US officials raised concerns because the acquired company’s products are integrated into military and critical infrastructure systems.
The Justice Department filed a complaint against China-based Suirui Group on Feb. 10 after the group failed to comply with an order to divest of California-based Jupiter Systems.
President Donald Trump ordered the divestment on July 8, 2025, after a review by the interagency Committee on Foreign Investment in the United States (CFIUS), giving the companies a 120-day deadline. The deadline was extended twice and the companies have failed to comply, according to the Justice Department.
Suirui Group is a Beijing-based enterprise tech services company, and Jupiter Systems is incorporated in Delaware and based in California with a subsidiaries in Hong Kong and China. Jupiter Systems sells video hardware and software, and counts U.S. government agencies among its customers. Suirui acquired Jupiter in February 2020.
Suirui Group and Jupiter Systems did not respond to inquiries from The Epoch Times by time of publication.
According to the complaint, CFIUS extended the divestment deadline at Suirui’s request to Feb. 3.
“As of this filing, Defendants still have not complied with their obligations, including divestment, under the Order,” the Feb. 10 complaint reads. The Justice Department is asking a federal court to compel the divestiture of all Jupiter System assets, and Jupiter to divest of its Asia subsidiaries.
National Security Concern
CFIUS is comprised of several officials, including the Treasury, Homeland Security, Commerce, War, State, and Energy secretaries.
n December 2024, the committee identified national security risks related to potential compromise of Jupiter products used in “military and critical infrastructure systems, which could enable unauthorized access to data or disablement of critical systems,” according to the complaint.
CFIUS then “attempted to negotiate” with the companies, which “did not meaningfully engage,” according to the complaint. A formal review began on April 7, 2025, and CFIUS “determined that mitigation short of abandonment was no longer sufficient to address the identified national security risks” and asked the companies to voluntarily abandon the transaction. The companies declined, resulting in Trump’s executive order three months later.
According to the complaint, the Pentagon and Treasury have engaged with the companies, “including through weekly meetings” and one on-site visit to Jupiter’s California facility since the executive order “to ensure that Suirui does not access Jupiter Systems’ sensitive assets.”
