The don't really need to order employees of the company, they can just do it. Either by completely owning a CA or by just going in and doing it. If it should be hidden, they can do it as part of an unrelated warrant.

> the CA would be immediately distrusted by browsers, not as punishment but to deter state actors.

Do you think browsers operate outside of states?

> Compelling by the state to do something that destroys a company is illegal in many jurisdictions

How would it destroy the company? It might affect reputation, but as long as it wasn't the company doing it on its own, they can just claim to be the victim (, which they are). It will only affect the company, if is becomes public knowledge, which the state actor doesn't want anyway. I don't think reputation to not respond to legal warrants is protected by the law. Also for example the USA is famous for installing malware on other countries head of state.

Honestly this is the kind of law enforcement, which is fair in my opinion. It is much more preferable to mandated scanning (EU Chat Control), making the knowledge or selling of math illegal or sabotaging public encryption standards. No general security is undermined. It's just classic breaking in into some system and intercepting. Granted I think states shouldn't do it outside of their jurisdiction, but that is basically intelligence services fighting with each other.