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Elon Musk’s extensive business dealings with China have sparked some alarm on Capitol Hill, with some lawmakers questioning whether Beijing could exploit connections with Tesla and SpaceX to gain access to classified information.
Republican lawmakers have expressed concern that the Chinese government could attempt to obtain classified information through third-parties, such as SpaceX suppliers based in China.
The US and China are locked in intense competition over space technology and American officials have repeatedly accused Beijing of stealing US intellectual property and trade secrets.
Rep. Chris Stewart (R-Utah), a top member of the House Intelligence Committee, is attempting to hold closed-door briefings to probe whether China’s government has points of access to SpaceX – including whether Chinese entities have invested in Musk’s privately-held space firm, the Wall Street Journal reported.
“I am a fan of Elon Musk and SpaceX, but anyone would be concerned if there are financial entanglements with China,” Stewart told the outlet. “Congress doesn’t have good eyes on this.”
Tesla’s operations in China, which include a Shanghai production facility and past financial support from Chinese banks, are also under scrutiny. Chinese tech giant Tencent holds a 5% stake in Tesla.
Additionally, the Chinese government gave a package of incentives to lure Musk to build a factory in Shanghai. And after experiencing financial struggles in 2018 and 2019, Tesla received two loans in Chinese banks in 2019 and 2020 to support construction of the Shanghai factory.
“It’s certainly true that China’s coercive practices, anticompetitive practices, practices trying to steal our IP or steal our technology and know-how are well documented,” Commerce Secretary Gina Raimondo told the Wall Street Journal. “And so any businessperson doing business with China should be extremely wary. And I hope would never engage in any behavior that puts our national security at risk.”
Sen. Marco Rubio (R-Fla.) is another critic of Musk’s ties to China. In December, Rubio introduced a bill that would bar NASA – which works closely with SpaceX – as well as other federal agencies from giving contracts to companies linked to China.
The legislation would also force US companies active in the private space industry to be more transparent about funding they received from Chinese entities.
Tensions between the US and China have run hot in recent months, with US lawmakers and the Biden administration wary of Beijing’s support of Russia during its unprovoked invasion of Ukraine. US officials have also slammed the Chinese Community Party for various human rights abuses, leading the Biden administration to enact a diplomatic boycott of the 2022 Olympics.
Earlier this year, Musk faced widespread criticism after Tesla opened a showroom in Xinjiang, where Chinese authorities have targeted Uyghur Muslims and other religious minority groups in a campaign the US government has referred to as a genocide.
Rubio was among the public figures who ripped Musk for opening the store.
“Nationless corporations are helping the Chinese Communist Party cover up genocide and slave labor in the region,” Rubio’s office tweeted.
Representatives for Tesla and SpaceX did not immediately respond to a request for comment. Musk dissolved the company’s communications team in 2020 and generally relays information to the public through his Twitter account.
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