Trump blocks acquisition of equipment supplier Jupiter Systems by Hong Kong firm

WASHINGTON (Reuters) -President Donald Trump ordered the blocking of the acquisition of audiovisual equipment supplier Jupiter Systems by Hong Kong's Suirui International after Suirui was found to be a national security risk, the U.S. Treasury Department said on Friday.

The Committee on Foreign Investment in the United States reviewed and investigated the deal and "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," the Treasury Department said in a statement.

The department termed Suirui "a company organized under the laws of" China. Suirui describes itself as a cloud communication service carrier.

The two companies entered into a deal in early 2020. The order asks the Hong Kong firm to divest from the U.S. company in 120 days.

Washington, in particular Trump, has repeatedly cast China as a security threat in certain U.S. sectors and the world's two largest economies have had tensions for years spanning issues such as trade tariffs, technology, cybersecurity and geopolitics.

"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.

Jupiter Systems said it was aware of the order and was "actively reviewing the decision in consultation with legal counsel and our stakeholders." It added that it "did not anticipate any disruptions to its business while the matter was adjudicated."

The Chinese embassy in Washington and Suirui had no immediate comment on Friday. Beijing has previously dismissed accusations of posing a threat to U.S. security and businesses.

(Reporting by Kanishka Singh in Washington; Editing by Chris Reese, Mark Porter and Muralikumar Anantharaman)