The Tamesis
Chinese companies have been ordered to stop using cybersecurity software made by U.S. and Israeli companies, a new report says.
Beijing has asked domestic companies to avoid using cybersecurity software produced by more than a dozen U.S. and Israeli companies due to national security concerns, three people familiar with the matter told Reuters.
The move comes as trade and diplomatic tensions rise between China and the United States, with both sides vying for technological supremacy. This, they say, has made Beijing keen to replace Western-made technology with domestic alternatives.
See also: China strictly limits purchases of Nvidia’s H200 chips
U.S. companies whose cybersecurity software has been banned include VMware by Broadcom, Palo Alto Networks and flying towerwhile Israeli companies include Checkpoint software technologytwo sources said.
A third source said other companies whose software was banned include Mandiant, owned by Alphabet and Wizas well as the U.S. company that announced its acquisition of Alphabet last year mass strike, Sentinel One, Record the future, McAfee, Clarottiand Quick 7.
israeli company Cyber ArkThe acquisitions announced by Palo Alto last year are also on the list. Orca safety and Cato Networktwo Israeli companies, and Impawaacquired by French defense company Thales in 2023.
Some share prices fall after ban
Recorded Future said in an email that it has no business in China and has no intention of doing so. McAfee said it is a consumer-focused company and its technology is “not built for government or enterprise use.”
CrowdStrike said the company does not sell products to China, has no offices, employs personnel or hosts infrastructure in the country, so the impact is “negligible.” SentinelOne said the company has “no direct revenue in China” and gave similar reasons.
Claroty said it does not sell to China. Orca Security CEO Gil Geron said in a statement that his company had not been notified of the move. Geron added that his company was focused on defense and a ban “would be a step in the wrong direction.”
The other blacklisted companies did not respond to Reuters’ requests for comment.
Broadcom’s shares fell more than 4% in Wednesday trading, while Palo Alto’s shares were almost flat. Check Point shares closed slightly higher. Fortinet shares fell more than 2%. Rapid7 shares fell more than 1%.
Reuters was unable to determine how many Chinese companies had received the notices that sources said had been sent out in recent days.
Reports on Chinese hackers
Chinese authorities have expressed concerns that the software could collect confidential information and transmit it abroad, the sources said. They declined to be named due to the sensitivity of the situation.
China’s internet regulator, the Cyberspace Administration of China and the Ministry of Industry and Information Technology had not responded to requests for comment as of press time.
The United States and China, locked in an uneasy trade truce, are preparing for President Donald Trump’s visit to Beijing in April.
While the West and China have clashed over China’s efforts to build its semiconductor and artificial intelligence industries, Chinese analysts say Beijing is increasingly concerned that any Western equipment could be hacked by foreign powers.
As such, it sought to replace Western computer equipment and word processing software.
China’s largest cybersecurity providers include 360 Security Technology and Neusoft.
Some U.S. and Israeli companies facing bans have repeatedly accused China of hacking, which China denies.
Last month, Check Point published a report on an alleged China-linked hacking campaign targeting unidentified “European government offices.” In September, Palo Alto released a report accusing China of targeting diplomats around the world in hacking attacks.
Companies with offices in China
Several of the companies do not do business with Chinese customers, but others have established significant footprints in the country.
flying tower The company has three offices in mainland China and one in Hong Kong, according to its website. checkpointThe website lists support addresses in Shanghai and Hong Kong. Broadcom lists six China offices; Palo Alto Five local offices in China are listed, including one in Macau.
The politics surrounding foreign cybersecurity vendors have long been fraught with controversy. Such companies are typically staffed by intelligence veterans who often work closely with their respective defense agencies, and their software products provide broad access to corporate networks and personal devices — all of which, at least in theory, provide a springboard for espionage or sabotage operations.
For example, suspicions about the origins and motives of Russian antivirus company Kaspersky ultimately led to the software being purged from U.S. government networks in 2017. In 2024, Kaspersky products were banned from sale in the United States.
- Reuters Additional editing by Jim Pollard
See also:
Chinese hackers breached U.S. Treasury sanctions office: report
China’s cybersecurity agency says US hackers stole technology secrets – South China Morning Post
U.S. officials told: Use encryption to prevent Chinese phone calls from being hacked
US plans to ban sales of Chinese TP-Link routers: report
Chinese hackers break into U.S. courthouse wiretap network: WSJ
China behind U.S. online election campaign: Researchers
Chinese hackers behind malicious cyber operations: Australia
U.S. says China is using artificial intelligence to boost espionage – Wall Street Journal
U.S. seeks to review and amend undersea telecom cable rules
