"The news comes after ProPublica previously reported in March that SpaceX allows Chinese investors to buy a stake in the company - as long as funds are "routed through the Cayman Islands or other offshore secrecy hubs." The reporting suggested that SpaceX was trying to avoid scrutiny of its ties to China. Case in point, the company canceled a 2021 deal worth $50 million with a Chinese firm when plans became public, according to ProPublica 's reporting."
"Following the March reporting, Democrats sent a letter to secretary of defense Pete Hegseth and NASA, expressing "concerns about perceived and actual conflicts of interest" surrounding SpaceX. The "testimony, which arose during a corporate lawsuit in Delaware, suggests that SpaceX may be reluctant to publicly disclose the full extent of Chinese investment into the company's privately held ownership structure," the letter reads. "In light of the extreme sensitivity of SpaceX's work for DoD and NASA, this lack of transparency raises serious questions.""
Testimony revealed SpaceX accepted direct investment from Chinese investors, with some investors listed as shareholders and funds sometimes routed through offshore hubs like the Cayman Islands. Some planned investments were canceled when they became public, including a reported 2021 $50 million deal with a Chinese firm. Lawmakers expressed concern and Democrats sent a letter to the secretary of defense and NASA about perceived and actual conflicts of interest and a lack of transparency. The testimony arose during a corporate lawsuit in Delaware and suggests incomplete public disclosure of Chinese stakes in SpaceX's private ownership. SpaceX remains a major contractor for DoD and NASA, including military and Space Force launches.
Read at Futurism
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