Chinese authorities have instructed domestic companies to stop using cybersecurity software from more than a dozen American and Israeli firms, according to people familiar with the matter, in a move driven by national security concerns and China’s wider push to replace foreign technology with local alternatives.
The companies reportedly affected include US-based firms such as VMware (Broadcom-owned), Palo Alto Networks, Fortinet, as well as Mandiant (Google-owned) and several other cybersecurity vendors. Israeli firms named include Check Point, along with other companies in the sector, the sources said.
Officials reportedly raised concerns that the software could potentially collect sensitive data from corporate networks and transmit it outside China. Reuters said it could not confirm how many companies received the notice or how broadly it was distributed.
Some of the companies mentioned said they have limited or no business exposure in China, while others maintain offices and support operations in mainland China and Hong Kong.
The directive comes as Beijing and Washington remain locked in an increasingly tense rivalry over technology and security. Reuters reported that both sides are also preparing for a potential Trump visit to Beijing in April, even as disputes continue over China’s semiconductor and AI ambitions.
Market reaction was immediate: shares of Broadcom fell sharply in US trading, while Palo Alto Networks and Fortinet also dipped after the Reuters report.