Sarah Bauerle Danzman on U.S. military contracting and Chinese intelligence
On October 2, 2025, Sarah Bauerle Danzman, associate professor at the Hamilton Lugar School of Global and International Studies, was featured in ProPublica, responding to recent revelations that SpaceX received direct investment from Chinese financiers. Bauerle Danzman, an expert on the intersection of global finance and national security, warned that such ties could carry significant security implications, but that more information is needed to understand the structure of the investment in question.
While indirect Chinese investment would not create a concern, direct investment could generate national security vulnerabilities. “If the investors got access to nonpublic information about the company—say, details on its contracts or supply chain—it could be useful to Chinese intelligence,” she said, noting that this “would create huge risks that, if realized, would have huge consequences for national security.”
Bauerle Danzman’s comment reflects her long-standing focus on how foreign investments can become tools of state influence. With SpaceX deeply embedded in U.S. defense and intelligence projects, her warning highlights a growing concern in Washington: that foreign capital, especially from strategic rivals like China, can blur the line between economic opportunity and national vulnerability.
Sarah Bauerle Danzman’s expertise in global finance and national security brings exceptional depth to the Hamilton Lugar School’s curriculum by linking economic policy to pressing global security issues. Students can further engage with their content and learn more about global finance and national security at the Hamilton Lugar School.
You can read the full article, Elon Musk’s SpaceX Took Money Directly From Chinese Investors, Company Insider Testifies, on the ProPublica website.
About the author: Elizabeth Pierce is a first-year Master of International Affairs graduate student in the Hamilton Lugar School.