TradingKey – SpaceX’s demand that its supply chain remove Chinese employees or equipment will help it secure defense orders, but it will increase operating costs, which is unfavorable for a short-term rebound in its stock price.

On July 30, according to a Nikkei Asia report, Elon Musk’s space exploration company SpaceX ( SPCX) has requested its global supply chain to “de-China” by not hiring Chinese employees and not using equipment from Chinese companies to meet U.S. defense compliance requirements. As of press time, SpaceX was up 0.34% in pre-market trading, temporarily trading at $112.93.

It is reported that U.S. defense compliance requires that key military supply chains must not contain raw materials, electronic components, and…