Bloomberg reported Saturday that underwriters handling SpaceX’s planned $75 billion IPO have barred investors in mainland China and Hong Kong from participating in the offering, citing U.S. restrictions on the transfer of sensitive technologies and compliance concerns tied to defense-related regulations.

According to people familiar with the matter, Goldman Sachs and Morgan Stanley instructed banks in the underwriting syndicate not to accept orders from customers in China or Hong Kong, including private banking clients.

The decision was reportedly based on internal guidance related to the International Traffic in Arms Regulations (ITAR), which governs the export of defense technologies and technical data.

The move underscores growing scrutiny of Chinese investment in strategically important American technology companies.

Bloomberg also noted that SpaceX’s website appeared inaccessible from Hong Kong and Shanghai on Friday, displaying messages indicating access from those locations had been blocked.

The reported restrictions reflect a broader shift away from the era when Chinese venture capital firms, family offices and wealthy investors routinely backed Silicon Valley startups through offshore investment structures.

As tensions between Washington and Beijing have intensified, technology firms, particularly those involved in aerospace, artificial intelligence, and government contracting, have increasingly sought to limit Chinese ownership and influence.

The development comes amid generally strong ties between President Donald Trump and SpaceX CEO Elon Musk.

Trump has frequently praised Musk’s role in advancing American manufacturing, space exploration, and technological innovation, while Musk has emerged as a prominent voice advocating for U.S. industrial competitiveness and played a key role in securing Trump's 2024 victory in key swing states.

The administration has also emphasized strengthening domestic production capabilities and securing critical technologies against foreign influence, particularly from China.

Policymakers from both parties have raised concerns in recent years that Beijing’s growing technological and economic reach, combined with supply-chain dependencies that expanded during the Biden administration, could pose long-term risks to U.S. national security.

Against that backdrop, restrictions on foreign participation in sensitive sectors such as aerospace and defense have gained broader support in Washington.