Justice Department Files Action to Enforce Presidential Order on Chinese Company's Divestment from Jupiter Systems

The Justice Department filed a complaint in federal district court to enforce a presidential order prohibiting Suirui Group's acquisition of Jupiter Systems. The action, brought under section 721 of the Defense Production Act of 1950, compels the Chinese company to divest from the California-based firm. The President issued the order on July 8, 2025, after determining that the transaction threatens to impair the national security of the United States. The order followed a review by the Committee on Foreign Investment in the United States. This marks the first time such an enforcement action has been filed in federal district court. Suirui Group acquired Jupiter Systems in 2020 through its Hong Kong subsidiary Suirui International. Jupiter Systems provides video communications hardware and software to commercial and U.S. government customers. Despite two extensions of the divestment deadline to Feb. 3, the companies failed to comply with the order. The Justice Department's Civil Division, Federal Programs Branch is handling the matter. The case is captioned United States v. Suirui Group Co., Ltd., et al., No. 26-cv-00369 in the U.S. District Court for the District of Columbia. Trial Attorney Sam Bean is handling the case for the department. The claims asserted in the complaint are allegations only, and there has been no determination of liability.