China bans US and Israeli cybersecurity software
Chinese authorities have told domestic companies to stop using cybersecurity software from about a dozen U.S. and Israeli firms, citing national security concerns, sources familiar with the matter said.
This move comes amid rising trade and tech tensions between China and the U.S. Beijing is increasingly replacing Western technology with domestic alternatives.
Companies affected by the ban
The U.S. firms affected include Broadcom-owned VMware, Palo Alto Networks, and Fortinet. Israeli firms include Check Point Software Technologies. Shares of Broadcom and Palo Alto Networks fell over 1% in premarket trading, while Fortinet shares dropped nearly 3%.
Reuters could not confirm how many Chinese companies received the notice, which sources said was issued in recent days. Authorities worry the software could collect or transmit confidential data abroad.
Limited official comment
China’s Cyberspace Administration and Ministry of Industry and Information Technology did not respond to requests for comment. The four foreign companies also did not reply to Baner Club queries.
Context and timing
The announcement comes as the U.S. and China prepare for a visit by former U.S. President Donald Trump to Beijing in April. Even before Trump’s return to power, foreign cybersecurity vendors faced political scrutiny in China.
Chinese analysts have expressed concerns that Western-made equipment could be exploited by foreign powers. Consequently, Beijing has pushed to replace foreign computer equipment and software.
Domestic cybersecurity alternatives
China’s largest cybersecurity providers include 360 Security Technology and Neusoft. Chinese officials see domestic firms as more secure options than foreign suppliers.
Allegations of hacking
Some banned U.S. and Israeli firms have accused China of cyberattacks, which Beijing denies. Last month, Check Point reported a suspected China-linked attack on a European government office. In September, Palo Alto claimed Chinese hackers targeted diplomats worldwide.
Foreign firms’ presence in China
These companies have a significant footprint in China. Fortinet has three offices in mainland China and one in Hong Kong. Check Point maintains support offices in Shanghai and Hong Kong. Broadcom has six locations, while Palo Alto lists five offices, including one in Macau.
Cybersecurity firms often employ intelligence veterans and work closely with their national defence establishments. Their software can access corporate networks and individual devices, which analysts say could theoretically provide a springboard for spying or sabotage.
