China has told domestic firms to stop using U.S. and Israeli cybersecurity software, citing national security concerns amid rising tech tensions.
Reuters reported that China has ordered domestic companies to stop using cybersecurity solutions from more than a dozen U.S. and Israeli firms, citing national security risks. Tensions remain high over China’s push in semiconductors and AI, and Beijing fears Western technology could be used for espionage. The move reflects growing trade and diplomatic tensions with Washington and Beijing’s broader push to replace Western technology with domestic alternatives as competition over tech leadership intensifies.
China’s ban on foreign cybersecurity software affects a wide range of U.S. and Israeli firms. U.S. companies reportedly included VMware, Palo Alto Networks, Fortinet, Mandiant, CrowdStrike, SentinelOne, McAfee, Recorded Future, Claroty, Rapid7, and Wiz. Israeli firms named include Check Point, CyberArk, Orca Security, Cato Networks, and Imperva, now owned by France’s Thales.
The news immediately weighed on affected companies’ stocks.
“Reuters was unable to establish how many Chin”ese companies received the notice that the sources said was issued in recent days.” reported Reuters. Chinese authorities expressed concern the software could collect and transmit confidential information abroad, the sources said. They declined to be named due to the sensitivity of the situation.”
The U.S. and China are preparing for a possible Trump visit to Beijing amid fragile trade relations.
The debate over foreign cybersecurity vendors is complex and long-standing. Many of these companies employ former intelligence officials and maintain close ties with their governments, while their software often has deep access to networks and devices, creating at least a theoretical risk of espionage or sabotage. History shows these concerns can have real consequences: suspicions around Russia’s Kaspersky led to its removal from U.S. government systems in 2017, and by 2024, sales of its products were banned across the United States. This illustrates how national security concerns can quickly reshape the global cybersecurity market.
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