Key Points
- Chinese authorities have told domestic companies to stop using cybersecurity software from about a dozen U.S. and Israeli firms for national security reasons.
- The directive targets major vendors like VMware, Palo Alto Networks, Fortinet and Check Point, and pushes firms toward Chinese alternatives.
- The shift may impact global cybersecurity sellers’ access to China’s market and aligns with broader tech self-sufficiency goals amid U.S.–China tensions.
Chinese authorities have instructed domestic companies to stop using cybersecurity software from about a dozen U.S. and Israeli firms, according to sources familiar with the directive. The move is part of Beijing’s push to reduce reliance on foreign technology amid rising geopolitical tensions and concerns about national data security.
Among the affected suppliers are major U.S. and Israeli cybersecurity makers such as VMware (owned by Broadcom), Palo Alto Networks, Fortinet and Check Point Software Technologies, sources said. Regulators fear that foreign-made security tools could transmit sensitive information abroad or pose other national security risks if exploited.
The directive, issued over recent days, does not specify how many companies received it, and neither the authorities nor the affected firms have publicly commented. The move aligns with China’s broader strategy to accelerate the adoption of domestic alternatives in critical technology sectors, including cybersecurity and semiconductors.
Chinese tech firms such as 360 Security Technology and Neusoft are among local suppliers that could fill the gap left by foreign software, sources said. The push toward domestic tools reflects Beijing’s long-standing goal of decreasing Western technological influence and enhancing self-sufficiency, particularly amid ongoing tensions with the United States.
The decision has already affected markets, with shares of some cybersecurity companies sliding after the report emerged, as investors weighed potential losses in China’s vast market. Analysts say the shift could have wider implications for global cybersecurity firms that rely on China’s commercial sector for revenue.
The timing of the order — ahead of an expected visit to Beijing by U.S. President Donald Trump — underscores how tech and security issues remain central to U.S.-China relations, and suggests Beijing is reinforcing technology controls as part of broader geopolitical strategy.
Observers note that such restrictions could reshape cybersecurity markets in China, encouraging local innovation but reducing opportunities for foreign vendors. Local businesses will likely accelerate adoption of home-grown products to comply with the directive, while Western firms consider strategic adjustments in response to regulation.
