After investigating Suirui’s 2020 acquisition of Jupiter Systems, the Committee on Foreign Investment found a national security risk “relating to the potential compromise of Jupiter’s products used in military and critical infrastructure environments,” according to the Treasury Department (Reuters, July 11).
U.S. President Donald Trump issued an order blocking the acquisition of audiovisual equipment supplier Jupiter Systems by Hong Kong company Suirui International….
“To address this risk, the President’s order directs Suirui to divest all interests and rights in Jupiter and requires that Jupiter hold no interest or rights in any assets or operations of its Chinese subsidiaries acquired or created after the completion of the transaction,” the U.S. Treasury Department said.
Treasury’s press release doesn’t say much more than this. But the general concern that a Chinese company might use U.S. technology in a way that compromises U.S. security is plausible on its face even without further details.
The wording about “blocking the acquisition,” repeated in many news stories, is odd. Treasury talks about “prohibiting the acquisition.” The acquisition is a done deal; it can’t be blocked or prohibited. It can only be undone (maybe).
A presidential memorandum of February 21, 2025 pertaining to investments by the People’s Republic of China in the United States observes:
The PRC does not allow United States companies to take over their critical infrastructure, and the United States should not allow the PRC to take over United States critical infrastructure. PRC-affiliated investors are targeting the crown jewels of United States technology, food supplies, farmland, minerals, natural resources, ports, and shipping terminals.
The PRC is also increasingly exploiting United States capital to develop and modernize its military, intelligence, and other security apparatuses, which poses significant risk to the United States homeland and Armed Forces of the United States around the world. Related actions include the development and deployment of dual-use technologies, weapons of mass destruction, advanced conventional weapons, and malicious cyber‑enabled actions against the United States and its people. Through its national Military-Civil Fusion strategy, the PRC increases the size of its military-industrial complex by compelling civilian Chinese companies and research institutions to support its military and intelligence activities.
Donald Trump’s presidential order of July 8 states that via the acquisition of Jupiter Systems, Suirui “might take action that threatens to impair the national security of the United States….” Again, no elaboration of the nature of the threat. Most of the lengthy document pertains to details of enforcing the order, which is to be effectuated “not later than 120 calendar days after the date of this order, unless such date is extended by the Committee on Foreign Investment in the United States….”
Actively reviewing
It seems that Suirui will not immediately cooperate. In a July 12 statement, Jupiter Systems, which provides “wall and control room technologies to mission-critical environments,” says that it “is aware of the recent federal order regarding the 2020 acquisition by Suirui Group and is actively reviewing the decision in consultation with legal counsel and our stakeholders.
“Since it was founded in 1981 by a team of engineers in Northern California, Jupiter Systems has been operating as a U.S. company…. We are focused on developing and manufacturing cutting-edge display wall and control room technologies to mission-critical environments. Our commitment to innovation, national security, and compliance with U.S. laws and regulations has always been unwavering as a U.S.-based company.
“We do not anticipate any disruptions to our business or service to our customers while this matter is adjudicated.”
This is disingenuous. Even if Jupiter Systems had been established in 1781 as a U.S. company, it would not have remained a U.S. company or be operating as one after being acquired by a Chinese company. Jupiter Systems, a former U.S. company, is operating in the United States and is owned by a Chinese company that answers to the Chinese Communist Party.
