Trump blocks Chinese firm's purchase of US audio-visual company over security risks

UPDATED: Jul 12, 2025 01:04 IST

US President Donald Trump said he has ordered a reversal of the 2020 acquisition of California-based Jupiter Systems by Hong Kong’s Suirui , citing national security concerns tied to Chinese ownership of a US company involved in sensitive sectors.

The Treasury Department, in a statement, said Trump’s order directs Suirui Group — a cloud communications supplier majority-owned by a Chinese parent — to divest entirely from Jupiter Systems, an audiovisual equipment company whose products are reportedly used in US military and critical infrastructure environments.

“The Committee on Foreign Investment in the United States identified a national security risk arising from Suirui’s ownership of Jupiter,” the Treasury Department said. “This risk relates to the potential compromise of Jupiter’s products used in military and critical infrastructure environments.”

Trump said the deal, initially completed in February 2020, posed unacceptable risks to the United States.

“I have ordered the prohibition of the acquisition of Jupiter Systems by Suirui ,” Trump said. “The US welcomes investment — but never at the cost of our national security.”

A Federal Register notice dated July 8 confirmed that Suirui has 120 days to divest from Jupiter, unless the Committee on Foreign Investment in the United States (CFIUS) grants an extension. It remains unclear if such a request has been made; representatives from Suirui, Jupiter Systems, and the Chinese Embassy did not respond to Associated Press requests for comment.

Suirui must also ensure that Jupiter has no ownership or rights to any assets or operations of its Chinese subsidiaries created or acquired after the original transaction, per the order.

“The CFIUS process focuses exclusively on identifying and addressing national security concerns on a case-by-case basis,” the Treasury said, reinforcing that the committee “welcomes foreign investment while protecting national security.”

CFIUS, an interagency committee chaired by the Treasury Secretary, includes top US officials from Defense, Homeland Security, Commerce, and other agencies, and is empowered to block or unwind deals that may threaten US interests.

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