According to sources cited by Reuters on Wednesday, Beijing has reportedly instructed Chinese enterprises to stop using network security software (commonly known as firewalls) from the United States and Israel due to concerns regarding national security.
Two informed sources disclosed that the Chinese authorities have requested domestic companies to cease the usage of network security software developed by approximately a dozen American and Israeli companies, citing national security reasons.
This move comes amidst escalated tensions in Sino-American trade and diplomacy, with Beijing attempting once again to be self-reliant by replacing Western technology with domestically produced alternatives. Simultaneously, the Chinese government’s crackdown and censorship on domestic networks are becoming increasingly severe.
The sources mentioned that the banned American companies include VMware, Palo Alto Networks, and Fortinet, while the Israeli company mentioned is Check Point Software Technologies.
Shares of VMware’s parent company Broadcom and Palo Alto Networks fell over 1% in pre-market trading, while Fortinet experienced a nearly 3% decline in its stock price.
Reuters reported that it is uncertain how many Chinese companies received the recent notice issued by the Chinese authorities.
The sources indicated that the Chinese authorities are concerned that foreign software may collect and transmit confidential information overseas. Due to the sensitivity of the situation, they declined to disclose their names.
As of the time of publication, responses to requests for comments from the Cyberspace Administration of China (CAC) and the Ministry of Industry and Information Technology (MIIT) were still awaited. These four companies also did not respond to Reuters’ inquiries.
Major network security providers in China include 360 Security Technology and Eastsoft Technology.
On the other hand, the Chinese government has increasingly launched hacker attacks against foreign governments and critical infrastructure.
In December 2025, a report by Check Point indicated that hackers related to China launched a cyber attack against a “European government entity.” In September of the same year, Palo Alto Networks released a report stating that Chinese hacker groups conducted attacks against global diplomats.