China Restricts Western Cybersecurity Tools * Science and Technology Times

China bans use of software from VMWare, Palo Alto, sources say
Authorities cite national security concerns, sources say
Beijing has been keen to replace Western-made technology

Beijing Moves to Limit Foreign Cyber Tools

Chinese regulators have reportedly told local firms to discontinue the use of cybersecurity products from about a dozen Western companies. The list includes U.S. vendors such as VMware, Palo Alto Networks, and Fortinet, as well as Israel’s Check Point Software Technologies. Officials expressed concern that these tools could potentially collect sensitive data and transmit it abroad, according to individuals familiar with the notice. It remains unclear how many companies received the directive, which was issued in recent days.

Financial markets reacted quickly, with shares of Broadcom and Palo Alto Networks falling more than 1% in premarket trading and Fortinet dropping nearly 3%. Neither China’s Cyberspace Administration nor the Ministry of Industry and Information Technology commented on the reports. The companies involved also did not respond to inquiries. Analysts note that the political climate has made foreign cybersecurity vendors increasingly vulnerable to regulatory shifts.

Geopolitical Tensions Shape Technology Policy

The decision comes as the United States and China prepare for a visit by U.S. President Donald Trump to Beijing in April. Relations between the two countries remain strained despite a fragile trade truce, particularly in areas involving semiconductors, artificial intelligence, and digital security. Chinese experts argue that Western hardware and software could be exploited by foreign intelligence agencies, prompting Beijing to accelerate the adoption of domestic alternatives. This push includes replacing Western computer systems and office software across government and state-linked sectors.

China’s largest cybersecurity firms, such as 360 Security Technology and Neusoft, stand to benefit from the shift. Meanwhile, several of the affected Western companies have previously published reports alleging Chinese-linked hacking operations, claims that Beijing has consistently denied. Recent publications by Check Point and Palo Alto Networks described cyber activities targeting European government offices and global diplomatic networks. These exchanges have contributed to a climate of mutual suspicion around cybersecurity tools.

Western Vendors Maintain a Large Presence in China

Despite rising tensions, U.S. and Israeli cybersecurity companies have built substantial operations in China over the years. Fortinet maintains three offices on the mainland and one in Hong Kong, while Check Point lists support centers in Shanghai and Hong Kong. Broadcom operates six locations in China, and Palo Alto Networks has five, including one in Macau. Their long-standing presence reflects China’s historical reliance on foreign cybersecurity expertise.

Cybersecurity products often require deep access to corporate networks and user devices, which can raise concerns about potential misuse. Many firms in the sector employ former intelligence personnel and maintain close ties to national defense establishments. This combination of technical access and geopolitical alignment has fueled debates about the risks associated with foreign cybersecurity tools. Analysts say such concerns are likely to intensify as global competition over digital infrastructure continues.