Elon Musk's SpaceX permits Chinese investors to buy shares through secrecy jurisdictions like the Cayman Islands, according to court testimonies. CFO Iqbaljit Kahlon revealed this practice in a legal dispute. While SpaceX usually avoids Chinese investment due to its defense contractor status, it finds offshore routes acceptable. This unusual strategy has alarmed experts, who worry about the implications of a defense contractor concealing foreign ownership, potentially undermining national security. Kahlon's substantial holdings in SpaceX raise further questions about the influence of foreign capital in the aerospace sector.
"The primary mechanism is that those investors would come through intermediate entities that they would create or others would create."
"Experts called SpaceX's approach unusual, saying they were troubled by the possibility that a defense contractor would take active steps to conceal foreign ownership interests."
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