President Trump issued an order blocking the acquisition of Jupiter Systems, LLC by Suirui International Co., Limited. Suirui is a Hong Kong company largely owned by Suirui Group Co., Ltd., which operates under the laws of the People’s Republic of China. The Delaware-based Jupiter Systems has been converted into Jupiter Systems, Inc.
The Committee on Foreign Investment in the United States (CFIUS) investigated this transaction under Section 721 of the Defense Production Act of 1950. CFIUS found a national security risk related to potential compromises in products used in military and critical infrastructure settings due to Suirui’s ownership. As a result, President Trump’s order requires Suirui to divest all interests in Jupiter and ensures that Jupiter holds no interests or rights in any Chinese subsidiaries’ assets or operations acquired post-transaction.
CFIUS focuses on identifying and addressing national security concerns from foreign investments on a case-by-case basis while maintaining its commitment to welcoming foreign investment.
ABOUT CFIUS: CFIUS reviews transactions involving foreign investments in the U.S. to determine their impact on national security. Chaired by the Secretary of the Treasury, its members include Secretaries from several departments such as State, Defense, Commerce, Energy, Homeland Security, among others. Non-voting ex-officio members include the Director of National Intelligence and Secretary of Labor; the Secretary of Agriculture participates when food security issues are involved.
The Treasury’s Office of Investment Security leads efforts to identify non-notified transactions that may pose national security risks under section 721. Public tips or disclosures can be sent to CFIUS.tips@treasury.gov.
