Chinese authorities have instructed domestic companies to stop using cybersecurity software produced by more than a dozen firms from the United States and Israel, citing national security concerns, according to people familiar with the matter. The directive, which was issued in recent days, reflects growing sensitivity in Beijing over foreign technology that may have access to sensitive data within Chinese networks. While the exact number of companies that received the notice could not be independently confirmed, the move comes at a time of heightened geopolitical and economic friction between China and Western nations, particularly the United States.
According to sources briefed on the issue, the affected U.S. companies include Broadcom owned VMware, Palo Alto Networks, and Fortinet, while Israeli firms named include Check Point Software Technologies. Additional companies whose software was reportedly restricted include Alphabet owned Mandiant and Wiz, CrowdStrike, SentinelOne, Recorded Future, McAfee, Claroty, and Rapid7. Israeli firms CyberArk, Orca Security, and Cato Networks were also mentioned, along with Imperva, which was acquired by French defense group Thales in 2023. The sources said Chinese regulators expressed concern that these software products could potentially collect sensitive information and transmit it outside the country. Officials from the Cyberspace Administration of China and the Ministry of Industry and Information Technology did not respond to requests for comment at the time of publication.
Several of the companies named stated that they have little to no exposure to the Chinese market. Recorded Future said it does not conduct business in China and has no plans to do so. McAfee described itself as a consumer focused company whose products are not designed for government or enterprise environments. CrowdStrike said it does not sell into China, has no offices or infrastructure there, and expects minimal impact. SentinelOne and Claroty also said they do not sell in China, while Orca Security said it had not been formally notified of any restriction. Other companies named in the reports did not respond to inquiries. Following the reports, shares of Broadcom declined by more than four percent, Fortinet shares fell over two percent, and Rapid7 shares dropped more than one percent. Palo Alto Networks shares were largely unchanged, while Check Point shares closed slightly higher.
The reported restrictions come as China and the United States prepare for a visit by U.S. President Donald Trump to Beijing in April, amid an uneasy trade truce. Analysts note that Beijing has increasingly sought to reduce reliance on Western technology, particularly in critical sectors such as cybersecurity, semiconductors, and artificial intelligence. Chinese policymakers have expressed concerns that foreign hardware and software could be exploited by external governments for surveillance or disruption. As a result, China has accelerated efforts to replace foreign technology with domestic alternatives, including products from major local cybersecurity providers such as 360 Security Technology and Neusoft. Some of the foreign companies affected by the restrictions maintain a significant presence in China, with offices and support operations across mainland cities and Hong Kong, highlighting the complex commercial implications of the move. The situation also reflects long standing global mistrust surrounding cybersecurity vendors, whose tools often have deep access to networks and are frequently linked to national security ecosystems in their home countries.
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