Investing.com-- Wealthy Chinese investors are discreetly channeling millions of dollars into Elon Musk’s private companies, including SpaceX, xAI, and Neuralink, through opaque financial structures designed to conceal their identities, the Financial Times reported on Sunday citing asset managers involved in the transactions.

These investments are facilitated via special-purpose vehicles (SPVs), which allow Chinese capital to flow into Musk’s ventures while avoiding regulatory scrutiny from U.S. authorities, the report stated.

The practice has gained traction amid heightened tensions between Washington and Beijing, where Chinese capital faces increasing restrictions in critical technology sectors.

Despite no legal prohibitions against the use of SPVs, the covert nature of these transactions raises concerns about potential conflicts of interest, given Tesla Inc (NASDAQ: TSLA ) CEO’s growing influence in U.S. government policy and business, the FT reported.

Three Chinese investors told the Financial Times that they had collectively funneled more than $30 million into Musk’s ventures over the past two years.

Homaer Financial, a Chinese asset management firm, has actively marketed investments in SpaceX, pitching the company’s rapid valuation growth to wealthy Chinese individuals, the report stated.

In a recent webinar attended by hundreds of Chinese investors, a Homaer representative pitched SpaceX shares with a minimum buy-in of $200,000, citing the company’s strong U.S. government and military backing, the FT reported.

While these transactions are primarily profit-driven, the secrecy surrounding Chinese involvement reflects broader geopolitical sensitivities, with U.S. regulators wary of foreign influence in high-tech industries tied to national security, the report added.