Chinese and Hong Kong-based investors have been excluded from SpaceX’s historic initial public offering (IPO) due to U.S. national security regulations governing sensitive aerospace technology.
At the centre of the restriction are export control laws, particularly the International Traffic in Arms Regulations (ITAR), which limit access to companies involved in defence-related and advanced space systems.
This means because SpaceX designs and operates rockets, satellites, and launch infrastructure with potential military applications, it falls under strict compliance rules.
Under these regulations, underwriters managing the IPO are required to screen and restrict participation from investors in jurisdictions considered sensitive or high-risk for technology transfer concerns.
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