SpaceX restricted the participation of Chinese and Hong Kong investors during its largest-ever initial public offering (IPO), according to reports. As wariness deepens in the United States over the leakage of advanced technologies, including artificial intelligence (AI), to China, the move to push out Chinese capital is expected to become more pronounced, since the remaining large IPOs are also in strategic industries such as AI.
The New York Times (NYT) reported Tuesday, citing sources, that SpaceX excluded Chinese and Hong Kong investors from its IPO. While there have been cases of Chinese investors being excluded from private investments, this is the first time a blanket restriction has been imposed on a mega IPO.
For now, the interpretation that this was a voluntary decision by SpaceX in consideration of its relationship with the U.S. government carries weight. The U.S. government is concentrating its efforts on blocking advanced technologies such as AI from being transferred to China, and SpaceX counts this government as a key customer. Revenue from the U.S. government last year was approximately $4 billion. Hanlin, a director at Asia Group, explained, "As concerns over national security, intellectual property (IP) protection, and data governance grow, U.S. technology firms are increasingly cautious about attracting Chinese capital."
Some assess this as a case demonstrating that the U.S.-China conflict is expanding beyond trade into the realms of technology and capital. Aaron Bartnick, a former White House technology policy official, diagnosed it as "a very clear signal that decoupling of technology and capital is underway."
OpenAI and Anthropic, which are expected to go public this fall, are also reportedly likely to restrict the participation of Chinese investors.
