JAKARTA - Chinese authorities have ordered domestic companies to stop using cybersecurity software made by about a dozen US and Israeli companies. They have raised concerns about national security. This was revealed by two sources who were directly aware of the policy.
This step was taken amid rising trade and diplomatic tensions between China and the United States, as the two countries compete to achieve technological supremacy. Beijing has for the past few years actively sought to replace Western-made technology with domestic production alternatives.
US companies whose cybersecurity software is banned include VMware, which is owned by Broadcom, Palo Alto Networks, and Fortinet. Meanwhile, from Israel, the ban includes Check Point Software Technologies.
It was not immediately clear how many Chinese companies had received the notice, which a source said was issued in recent days.
Chinese authorities have expressed concerns that the software could potentially collect and transmit classified information overseas, the sources told Reuters. They declined to be identified because of the sensitivity of the issue.
China's internet regulator, the Cyberspace Administration of China, as well as China's Ministry of Industry and Information Technology have not responded to requests for comment until this report was published. The four companies have also not answered questions from Reuters.
Trump's Visit Preparations
The United States and China, which are currently in a fragile trade truce, are preparing for a visit by US President Donald Trump to Beijing in April 2026.
Even before Trump returns to power in early 2025, political issues surrounding foreign cybersecurity vendors have long been a sensitive issue in China.
While the West and China are at loggerheads over Beijing's efforts to build a semiconductor and artificial intelligence sector, Chinese analysts say the government is increasingly concerned that Western-made equipment could be hacked by foreign powers.
China is trying to replace Western computer devices and word processing software with domestic products. China's largest cybersecurity providers include 360 Security Technology and Neusoft.
In contrast, several US and Israeli companies facing this ban have often accused China of hacking operations, an accusation that Beijing has consistently denied.
Last month, Check Point released a report on alleged hacking operations linked to China against an unnamed "European government office". In September, Palo Alto also published a report that cited alleged hacking attempts by China and targeted diplomats around the world.
Significant Trace in China
The companies have built up sizable presences in China over the years.
Fortinet has three offices in mainland China and one in Hong Kong, according to its official website. Check Point's website lists support addresses in Shanghai and Hong Kong. Broadcom has six locations in China, while Palo Alto lists five local offices in China, including one in Macau.
Cyber security companies often employ former intelligence personnel, work closely with their respective national defense agencies, and have broad access to corporate networks and individual devices. This condition, at least theoretically, can be a gateway for espionage or sabotage activities.
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