Why China Is Banning U.S. and Israeli Cybersecurity Software

What Happened

According to multiple sources familiar with the matter, Chinese authorities have told domestic firms to discontinue the use of cybersecurity products from a wide range of foreign vendors. The directive was reportedly communicated quietly rather than through a public government announcement.

While no official notice has been published, the instructions were described by sources as broad in scope and affecting numerous well-known cybersecurity providers. None of the companies involved have publicly confirmed receiving a formal ban notice.

Companies Affected by the Reported Ban

Sources cited by Reuters identified a substantial list of U.S. and Israeli cybersecurity firms whose software Chinese companies were instructed to stop using.

U.S. Companies

The U.S. companies named by sources include:

• VMware, which is owned by Broadcom
• Palo Alto Networks
• Fortinet
• Mandiant, which is owned by Alphabet
• Wiz, whose acquisition by Alphabet was announced last year
• CrowdStrike
• SentinelOne
• Recorded Future
• McAfee
• Claroty
• Rapid7

Israeli Companies

Israeli cybersecurity firms cited by sources include:

• Check Point Software Technologies
• CyberArk, whose acquisition by Palo Alto Networks was announced last year
• Orca Security
• Cato Networks

In addition, Imperva was also included on the list. Imperva was acquired in 2023 by the French defense and technology firm Thales.

According to Reuters, two sources confirmed the core list of U.S. and Israeli firms, while a third source provided additional company names, indicating that the scope of the directive may be broader than initially reported.

The National Security Rationale

Chinese regulators have framed the decision around national security concerns. Cybersecurity software typically operates with high-level access to enterprise and government networks. These tools inspect traffic, detect threats, manage identity systems, and control access to sensitive systems.

From Beijing’s perspective, reliance on foreign cybersecurity vendors could introduce risks if sensitive data were accessed or transmitted outside China. Restricting such software aligns with the government’s broader effort to limit foreign involvement in critical digital infrastructure.

Part of a Broader Policy Direction

This move fits within China’s long-standing emphasis on cyberspace sovereignty. The concept prioritizes domestic control over data, networks, and digital security. Over the past decade, China has enacted cybersecurity, data security, and data protection laws that impose strict requirements on how information is handled within its borders.

Reducing dependence on foreign technology has become a central goal of China’s industrial and security strategy, particularly in sectors considered strategically sensitive.

Geopolitical Context

The reported ban comes amid ongoing technology disputes between China and Western governments, especially the United States. Washington has imposed export controls and restrictions aimed at limiting China’s access to advanced technologies, including semiconductors and AI-related tools.

Cybersecurity software occupies a particularly sensitive position in this rivalry because it sits deep inside networks that support government agencies, critical infrastructure, and large enterprises.

Impact on the Cybersecurity Industry

The news triggered market reactions, with shares of some affected cybersecurity companies experiencing declines as investors evaluated potential exposure to the Chinese market. However, analysts note that the immediate financial impact may vary, since many of these firms generate the majority of their revenue outside China.

Without a formal public ban, it remains unclear how existing contracts, technical support, or transition periods will be handled.

Conclusion

China’s reported move to restrict U.S. and Israeli cybersecurity software marks a significant development in global technology and security policy. It highlights Beijing’s determination to reduce foreign influence over critical digital systems while accelerating domestic alternatives.

As cybersecurity becomes increasingly tied to national strategy and geopolitical competition, this decision underscores how digital security tools are no longer viewed solely as commercial products, but as strategic assets with far-reaching implications.

Read more: Reuters