The United States government has taken unprecedented step in its efforts to protect national security. On February 9, 2026, the Department of Justice filed a lawsuit in federal court to enforce a presidential order that requires a Chinese company to sell its stake in an American tech firm. This move is a major escalation in how the U.S. handles foreign investments that it deems risky.
The story began back in 2020 when the Suirui Group, based in China, bought Jupiter Systems, a California company that makes specialized video communication tools. While it seemed like a standard business deal at the time, Jupiter Systems provides technology that is used by the U.S. military and for critical government infrastructure. Last July, after an investigation, the President determined that this ownership was a threat and ordered Suirui to divest—essentially, they were told they had to sell the company.
Despite being given several extensions to find a buyer and walk away, Suirui missed the final deadline of February 3, 2026. This led to the current lawsuit, which is the first time the government has ever gone to a federal district court to force a divestment like this. It is a clear signal that the “grace period” for these types of security mandates is over.
The core of the government’s concern is about data and control. Officials worry that as long as a Chinese company owns Jupiter Systems, there is a risk that sensitive information could be accessed or that critical systems used by the military could be tampered with. The Justice Department is now asking the court to step in and potentially appoint a third party to manage the sale of the company since the owners failed to do it themselves.
This case is being watched closely by business leaders and foreign investors. It shows that the U.S. is willing to look back at deals that closed years ago if they think a new security risk has emerged. For the government, it isn’t just a policy debate anymore; it is a legal battle to ensure that foreign control doesn’t compromise the systems that keep the country running.
Other Recent Enforcement Actions
This isn’t an isolated incident. Just last month, on January 2, 2026, the President issued a similar order against HieFo Corporation, a California-based chip manufacturer controlled by a Chinese national. HieFo was ordered to divest assets it had acquired from EMCORE Corporation, specifically those involving indium phosphide (InP) optical chips used in AI and telecommunications.
Like the Jupiter Systems case, the HieFo deal was “non-notified,” meaning the companies didn’t tell the government about the acquisition when it happened in 2024. These cases prove that the Committee on Foreign Investment in the United States (CFIUS) is aggressively hunting for old deals that slipped through the cracks.