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A US watchdog group is urging the Federal Communications Commission to block SpaceX’s $17 billion deal to acquire radio spectrum from EchoStar over concerns about Chinese investments in Elon Musk’s companies.
On Thursday, Frequency Forward filed a formal petition with the FCC, asking it to deny EchoStar’s transfer of its radio spectrum to SpaceX, a private company that has no obligation to publicly disclose its financial information.
The group makes the bold accusation that SpaceX CEO Elon Musk “is vulnerable to exploitation, influence, and control by the Chinese government,” citing his business dealings in China over the years, which include building car factories in the country through Tesla.
“For this reason, the FCC should not grant this application, nor any SpaceX application until Musk[‘s] business dealings and relationships with [the] Chinese Communist Party (‘CCP’) are thoroughly investigated in the crucible of an evidentiary hearing,” the petition adds.
(Photo by Andrew Harnik/Getty Images)
Frequency Forward is a newly formed public interest group affiliated with the Washington, DC law firm Smithwick & Belendiuk, which focuses on the communications industry, including mergers and acquisitions. The watchdog group has been pushing for transparency at the FCC and scrutinizing Musk’s influence over regulatory agencies. The billionaire was a major presence in DC earlier this year as the head of DOGE; since leaving his post, Musk’s relationship with the president has been on and off.
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The group is now turning its sights to the EchoStar deal, which promises to upgrade SpaceX’s cellular Starlink service—a satellite system designed to serve everyday phones. As the FCC scrutinizes the radio spectrum transfers for approval, the Commission also solicited public comments, which prompted Frequency Forward to call out the alleged security risks.
The petition cites reporting from ProPublica, which uncovered court testimony from a SpaceX investor who said Elon Musk’s company “obviously” has Chinese investors. Although there’s no law prohibiting such investment in SpaceX, a US defense contractor, ProPublica reports the business ties have raised concerns about potential Chinese espionage risks.
Frequency Forward added: “The investments are being placed through special purpose vehicles, which conceal the identities of the Chinese investors and the number of shares they purchase.
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“Who are these individuals? What links do they have to the CCP?” the petition further asks. “What percentage of equity do they own in SpaceX and other Musk companies? What access do they have to SpaceX’s key communications systems?”
The group is also concerned about the Chinese government exerting pressure on Musk through Tesla. “He has built two factories in China on land leased from the CCP. The CCP has provided extensive financial incentives, including low-interest loans and tax breaks, which gives the CCP significant leverage over Musk and his companies.”
SpaceX didn’t immediately respond to a request for comment. But the FCC is expected to clear the EchoStar deal. FCC Chair Brendan Carr has been a vocal supporter of SpaceX and its Starlink satellite network. Still, he has also emphasized the need for the United States to maintain its dominance in the space sector and counter China’s growing ambitions.
About Our Expert
Michael Kan
Senior Reporter
Experience
I’ve been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I’m currently based in San Francisco, but previously spent over five years in China, covering the country’s technology sector.
Since 2020, I’ve covered the launch and explosive growth of SpaceX’s Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I’ve combed through FCC filings for the latest news and driven to remote corners of California to test Starlink’s cellular service.
I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. Earlier this year, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.
I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I’m now following how President Trump’s tariffs will affect the industry. I’m always eager to learn more, so please jump in the comments with feedback and send me tips.
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