BEIJING (dpa-AFX) - The U.S. Justice Department has filed a complaint under section 721 of the Defense Production Act of 1950 to enforce a presidential order prohibiting Suirui Group's acquisition of Jupiter Systems and compelling the Chinese cloud communication service company to divest from the California-based visualization technology manufacturer.
In July last year, President Donald Trump issued an Executive Order based on his findings that the transaction 'threatens to impair the national security of the United States.' This is the first such action ever filed in federal district court.
While foreign direct investment is important to the U.S. economy, foreign investment in certain companies and certain industries, particularly those involved in defense or critical infrastructure, can pose national security concerns. To address these concerns, the President has the authority to suspend or prohibit such a transaction. The Committee on Foreign Investment in the United States (CFIUS) is empowered to review and investigate such transactions.
According to the Complaint, in 2020, Suirui Group, through its Hong Kong subsidiary Suirui International, acquired all of Jupiter Systems, which provides video communications hardware and software to commercial and U.S. Government customers. On July 8, 2025, the President issued an Order prohibiting the transaction and requiring Suirui to divest all its interests in Jupiter Systems within 120 days.
Despite CFIUS granting two extensions of the divestment deadline, to February 3, Suirui and Jupiter Systems have failed to comply with the Order, the complaint says. The United States thus filed a complaint to protect the country's national security interests, the Justice Department said in a press release.
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