Analysis-How a merged SpaceX-Tesla might navigate its China problem

Oct 22 (Reuters) Elon Musk’s potential mega-merger of Tesla and SpaceX would likely face a China-shaped hurdle from regulators on both sides of the Pacific over concerns about national security and the sharing of data and technology. The world’s richest person said on Tuesday his two companies had set up special committees to discuss a union, calling a merger a “good idea”. Turning it into reality, however, would mean navigating the thorny issue of Tesla’s heavy reliance on China for ​manufacturing versus SpaceX s defence business. Rocket company SpaceX is increasingly reliant on sensitive US government and defence contracts, which could subject any merger involving Tesla’s business in China to ‌intense scrutiny on national security grounds. Chinese regulators also require Tesla to keep confidential user data collected by its automated driving systems firmly in China, and any firewall would have to prevent the flow of information or technology in either direction. Below are some ways