SpaceX, the aerospace and defense company founded by Elon Musk, has barred investors from Hong Kong and China from its planned $75 billion initial public offering, which is expected to launch later this month, as underwriters enforce US rules on critical technology exports.

Banks overseeing the deal, including Goldman Sachs and Morgan Stanley, have instructed syndicate partners to block orders from those regions, citing compliance and regulatory risks under the International Traffic in Arms Regulations. Access to SpaceX’s website from these locations was also blocked.

The decision came amid an ongoing trend among US technology and AI companies to limit Chinese investment over national security concerns, particularly for companies in sensitive sectors or pursuing government contracts.

The move also marked a stark contrast to the previous decade when Chinese investors were active participants in Silicon Valley via offshore structures. Heightened US-China geopolitical tensions are driving founders and banks to reduce or avoid Chinese ownership in pre-IPO cap tables.