Chinese authorities have begun quietly eliminating Western solutions from corporate networks in the country. According to Reuters sources, Chinese companies have been advised to stop using cybersecurity software from dozens of US and Israeli vendors.
The reasons given include national security concerns and the risk of data leaks abroad.
The decision was made amid the ongoing trade and technology stalemate between Beijing and Washington. China has long focused on replacing foreign technologies with domestic developments, and the cybersecurity market has become the latest sector in which the government has decided to accelerate this process.
The restrictions affected products from VMware, Palo Alto Networks, Fortinet , and other American companies, as well as Israeli solutions from Check Point, CyberArk, Orca Security, and Cato Networks. The list also included services from Mandiant and Wiz, CrowdStrike, SentinelOne, Recorded Future, McAfee, Claroty, and Rapid7 . Sources say the notifications were sent in recent days, but the exact number of companies that received them is unknown.
According to agency sources, Chinese regulators fear that foreign software could collect sensitive information and transmit it abroad . Official comments from the Cyberspace Administration of China and the Ministry of Industry and Information Technology were not available at the time of publication.
The companies themselves responded calmly. Many stated they did not operate in China or generate significant revenue from it. CrowdStrike and SentinelOne emphasized that they had virtually no presence in the Chinese market and did not expect the ban to have a significant impact. Recorded Future and Claroty stated that they did not work with Chinese clients at all. The CEO of Orca Security stated that his company had not been informed of the measures and called the potential ban a step in the wrong direction.
Nonetheless, the market reacted nervously. Broadcom shares fell more than 4%, Fortinet shares fell more than 2%, and Rapid7 shares fell more than 1% . Palo Alto Networks shares remained virtually unchanged, while Check Point shares even rose slightly.
This story unfolds amid preparations for US President Donald Trump’s visit to Beijing, scheduled for April. Despite a formal trade truce, mutual distrust persists between the two countries. Chinese analysts have repeatedly stated that Beijing is increasingly wary of the use of any Western equipment, viewing it as a potential target or tool for cyber espionage.
As a result, China is actively promoting its own solutions. 360 Security Technology and Neusoft are considered major local players in the cybersecurity market. Meanwhile, some of the Western companies affected by the restrictions had previously published reports of alleged Chinese cyber attacks, which Beijing traditionally denies.
The policy surrounding foreign cybersecurity software vendors remains an extremely sensitive topic . These companies often collaborate with their respective countries’ defense agencies, and their products have extensive access to corporate networks and devices. Such suspicions have led to high-profile decisions in the past.
In the United States, Kaspersky Lab antivirus software began being removed from government networks in 2017, and in 2024, its sale was completely banned nationwide.
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