On Tuesday, the U.S. Department of Justice filed a lawsuit demanding that a Chinese company be forced to divest from a U.S. communications company in accordance with a presidential executive order. This marks the first time a federal district court in the United States has handled such a lawsuit.
The Department of Justice stated in a release on Tuesday that the federal government filed a complaint on Monday seeking to enforce a presidential executive order under the 1950 Defense Production Act. The order prohibits the Chinese company associated with Suirui Group from acquiring Jupiter Systems, a California-based company, and mandates Suirui Group to divest from Jupiter Systems.
The Justice Department explained that this action is taken to safeguard national security. President Trump issued the executive order on July 8, 2025, blocking the transaction and requiring Suirui to divest all interests in Jupiter Systems within 120 days, citing the deal as a “threat to U.S. national security.”
The case, titled “United States v. Suirui Group Limited, et al.,” with case number 26-cv-00369, is being handled by the Civil Division of the Justice Department. Trial attorney Sam Bean from the Civil Division is overseeing the case.
In 2020, Suirui Group, headquartered in Beijing’s Haidian District, acquired all shares of Jupiter Systems through its Hong Kong subsidiary Suirui International.
Jupiter Systems is a company that sells video communication hardware and software to commercial and U.S. government customers. The company specializes in video wall and display processing technology. Video walls refer to large screen display systems composed of multiple display units, widely used in commercial events, traffic control, government offices, among other areas.
Suirui, on the other hand, focuses on cloud communication and video conferencing hardware.
Despite the U.S. Foreign Investment Review Board (CFIUS) extending the deadline for Suirui to divest its assets twice until February 3, both Suirui Group and Jupiter Systems failed to comply with the orders. As a result, the U.S. government filed a lawsuit to “protect national security interests.”
The Justice Department stated in the release: “While foreign direct investment is crucial to the U.S. economy, foreign investments in certain companies and industries, especially those involving defense or critical infrastructure, may raise national security concerns.”
“To address these issues, the president has the authority to take action when deemed appropriate, to suspend or prohibit any transaction that threatens U.S. national security. CFIUS has the authority to review and investigate such transactions,” the release added.
The Department of Justice is asking the court in the complaint to declare that the defendants have not complied with the presidential executive order and provisions of the Defense Production Act, prohibiting Suirui Group from owning or controlling equity and assets of Jupiter Systems and ordering Suirui to divest from Jupiter Systems’ equity and assets.