According to two sources familiar with the matter, companies including Broadcom-owned VMware, Palo Alto Networks, and Fortinet from the United States, as well as Israel’s Check Point Software Technologies, are among those affected by the directive. Reuters was unable to determine how many Chinese firms received the notice, which was reportedly issued in recent days. The sources spoke on condition of anonymity due to the sensitive nature of the decision.
The move reflects Beijing’s growing concern over the security of foreign-made technology. Officials fear that software from these companies could potentially collect confidential corporate and governmental data and transmit it outside China. At the time of Reuters’ reporting, China’s Cyberspace Administration and the Ministry of Industry and Information Technology had not provided comment, and the firms named in the ban did not respond to Reuters’ inquiries.
The directive comes amid heightened competition between the United States and China for technological dominance, encompassing sectors from semiconductors to artificial intelligence. While efforts to advance domestic chip production and AI innovation have been widely publicized, Chinese authorities have also increasingly focused on replacing foreign computer equipment and software with domestic alternatives. Analysts in China say the government’s concern over potential cyber vulnerabilities in Western-made equipment has intensified in recent years.
Reuters notes that this latest action is part of a broader push by Beijing to reduce dependence on foreign technology and strengthen national cybersecurity amid ongoing trade and diplomatic tensions with the United States. Experts suggest that similar measures targeting additional foreign technology providers could follow, as China continues to prioritize the security of its digital infrastructure.
