WASHINGTON -- Today, President Trump published an order prohibiting the acquisition by Suirui International Co., Limited, a Hong Kong company that is majority owned by Suirui Group Co., Ltd. (Suirui), a company organized under the laws of the People's Republic of China, of Jupiter Systems, LLC (Jupiter), a Delaware company (subsequently converted into Jupiter Systems, Inc., a Delaware corporation).
The Committee on Foreign Investment in the United States (CFIUS or the Committee) reviewed and investigated this transaction pursuant to Section 721 of the Defense Production Act of 1950, as amended (Section 721). CFIUS identified a national security risk arising from Suirui's ownership of Jupiter relating to the potential compromise of Jupiter's products used in military and critical infrastructure environments. 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 CFIUS process focuses exclusively on identifying and addressing national security concerns arising from a covered transaction on a case-by-case basis. This focused mandate reinforces CFIUS's commitment to welcoming foreign investment while protecting national security.
CFIUS is an interagency committee authorized to review certain transactions involving foreign investment in the United States and certain real estate transactions by foreign persons, in order to determine the effect of such transactions on the national security of the United States. CFIUS is chaired by the Secretary of the Treasury and includes as members the Secretaries of State, Defense, Commerce, Energy, and Homeland Security; the Attorney General; the Director of the White House Office of Science and Technology Policy; and the U.S. Trade Representative. The Director of National Intelligence and the Secretary of Labor participate as non-voting, ex-officio members; and the Secretary of the Department of Agriculture is a member when a case involves elements of the agricultural industrial base that have implications for food security.
Treasury's Office of Investment Security leads CFIUS's efforts to identify transactions where no voluntary notice has been filed under section 721 of the Defense Production Act of 1950, as amended. If CFIUS determines that a non-notified transaction may be a covered transaction or covered real estate transaction and may raise national security considerations, the Committee may contact the transaction parties and request a CFIUS filing. Members of the public may contact Treasury with any tips, referrals, or voluntary self-disclosures at CFIUS.tips@treasury.gov.