Before SpaceX IPO, investors in China secretly acquired stakes
One previously unreported SpaceX investor has ties to Chinese military contractors.
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A businessman with ties to Chinese military contractors was among the overseas investors who acquired stakes in SpaceX while it was still a private company. An entity linked to the Qatari royal family also took a stake. The new details come from a private investor list obtained by ProPublica that sheds light on a particularly delicate issue for Elon Musk’s rocket company: which people in countries like China bought into the company, and how. SpaceX built its business off sensitive US government work like making spy satellites for the Pentagon. While there is no ban on Chinese investment in US military contractors, such investment is heavily regulated. In a sign of its sensitivity to the concerns, SpaceX barred investors from China and Hong Kong from buying shares in its initial public offering last week due to “regulatory and compliance risks,” Bloomberg reported. The US government alleges that China has a strategy of using investments in sensitive industries for espionage and to get access to cutting-edge technology. Read full article Comments
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