DOJ Sues to Enforce President Trump’s Order Requiring a Chinese Company to Divest Stake in U.S. Video Communications Company

The U.S. Department of Justice (DOJ) recently filed a lawsuit in the U.S. District Court for the District of Columbia — to be heard by Judge Amir Ali — seeking to enforce President Trump’s July 2025 order requiring Chinese company Suirui Group Co., Ltd. and its affiliate Suirui International Co., Ltd. (together, Suirui), which had purchased U.S. video communications company Jupiter Systems, LLC (Jupiter) six years ago, to divest all interests and rights in Jupiter and its assets and property. This lawsuit is the first to compel enforcement of a presidential divestiture order issued after review by the Committee on Foreign Investment in the United States (CFIUS).

To address concerns that foreign investment in certain U.S. companies and property may pose national security risks, federal law empowers CFIUS to review and investigate certain transactions (covered transactions). If CFIUS identifies national security risks associated with a transaction, it may require parties to agree to mitigation measures designed to address those risks. It may also refer transactions to the President, who may suspend or prohibit a transaction if he finds there is credible evidence that “the foreign interest exercising control might take action that threatens to impair the national security.”

Although most CFIUS reviews are initiated when transaction parties notify CFIUS of an impending or pending transaction, CFIUS may also initiate a review on its own if it becomes aware of a covered transaction. Parties to a transaction often notify CFIUS of a covered transaction ahead of closing because CFIUS’s authority to initiate its own review of transactions is not time-limited, and it is generally less expensive and disruptive to abandon a transaction before closing than it is to unwind a transaction that has already closed.

In this case, Suirui is a privately-owned Chinese company that develops and provides video communications products and cloud-based communications platforms. Jupiter provides video communications hardware and software to commercial and U.S. government customers. On February 28, 2020, Suirui acquired all equity interests of Jupiter. Suirui and Jupiter did not submit a written notice of the transaction to CFIUS. In March 2024, CFIUS contacted them and requested that they submit information about the transaction for CFIUS’s review. Suirui and Jupiter did so in October 2024.

From the information submitted, CFIUS identified national security risks associated with the potential compromise of Jupiter’s products that have already been incorporated into U.S. military and critical infrastructure systems. CFIUS attempted to negotiate mitigation terms with the parties, but the parties rejected the terms, untimely responded to follow-up requests for information, and refused to discuss voluntary abandonment of the transaction. CFIUS referred the transaction to the President, who found credible evidence that Suirui’s continued control over Jupiter threatens to impair the national security of the United States. On July 8, 2025, President Trump issued an order prohibiting the transaction and requiring Suirui to divest all interests and rights in Jupiter and its assets and property within 120 days. The order authorizes the Attorney General to take any steps necessary to enforce the order.

Despite receiving multiple extensions from CFIUS, the parties failed to meet their deadline to divest and, as of February 9, 2026, Suirui continued to hold interests and rights in Jupiter’s assets and operations. As a result, DOJ filed suit to enforce the President’s order. DOJ’s lawsuit seeks declaratory relief that the defendants violated both the President’s July 8, 2025, order and Section 721 of the Defense Production Act; injunctive relief against Suirui and Jupiter; a court order directing Suirui to divest itself of Jupiter and to transfer Jupiter’s equity and assets interest to a third-party fiduciary pending divestiture; and costs.

This is the first time that DOJ has filed suit to enforce a president’s divestiture order concerning a covered transaction that has already been completed. The action demonstrates the expansive authority of CFIUS and the President to monitor, review, and control foreign investments in U.S. critical technology businesses, infrastructure, and real estate, including after such investments have already been completed. Additionally, the action counsels the importance of a thorough evaluation of the benefits and risks of notifying CFIUS of a covered transaction prior to closing. Finally, the action highlights the government’s continued efforts to reduce Chinese ownership of sensitive American technologies. 

For questions about CFIUS’s jurisdiction, whether and how to notify CFIUS of a potential transaction, or about this post, contact the authors or any of their colleagues in Arnold & Porter’s Export Control & Sanctions or White Collar Defense & Investigations practice groups.

© Arnold & Porter Kaye Scholer LLP 2026 All Rights Reserved. This Blog post is intended to be a general summary of the law and does not constitute legal advice. You should consult with counsel to determine applicable legal requirements in a specific fact situation.