Ilon Musk
Some sources clarified that the banks have been instructed by management based on the U.S. International Traffic in Arms Regulations (ITAR), which regulate the export of defense technology and data.
Representatives for the deal’s lead banks, Goldman Sachs Group Inc. and Morgan Stanley, did not immediately respond to requests for comment. Attempts to reach SpaceX representatives outside of business hours were also unsuccessful, Bloomberg reported.
On Friday, SpaceX’s Web site was inaccessible to users in Hong Kong and Shanghai. When trying to access the site, an error message appeared, indicating that access from addresses from these regions was blocked.
In recent years, U.S. technology and artificial intelligence companies have become more cautious about raising capital from Chinese investors. This is due to increased scrutiny from regulators and customers who fear potential risks to national security and data protection. Companies interested in government contracts or operating in sensitive sectors are looking to shield their shareholders from investors who may trigger scrutiny from U.S. authorities or concerns from potential clients.
The trend is in stark contrast to the past decade, when Chinese venture capital firms, private equity funds, family offices and wealthy private investors invested heavily in Silicon Valley startups. Many of them utilized offshore investment funds and structures that concealed the ultimate owner of the capital, allowing them to back high-growth technology companies on par with global investors.
However, increasing geopolitical tensions between the U.S. and China have led founders and underwriters to become more selective in shaping the equity capital structure prior to public offerings. Some companies are even eliminating Chinese investors altogether or significantly reducing their equity stakes.
