Chinese authorities have told local companies to stop using cybersecurity software made by about a dozen companies from the U.S. and Israel because of national security concerns, Reuters reported, citing two people with knowledge of the matter.
The U.S. companies whose cybersecurity software has been banned include Broadcom-owned (AVGO) VMware, Palo Alto Networks (PANW), and Fortinet (FTNT). Meanwhile, the Israeli companies include Check Point Software Technologies (CHKP) the report added.
Broadcom, Palo Alto Networks, Fortinet, and Check Point Software did not immediately respond to a request for comment from Seeking Alpha.
Reuters noted that it was unable to establish how many Chinese companies received the notice that the people said was issued in recent days.
Chinese authorities are concerned that the software could collect and transmit confidential information abroad, the report noted.
The U.S. and China, which have been in a trade tussle for some time now, but recently have been in an uneasy truce as they prepare for a visit by U.S. President Donald Trump to Beijing in April.
The U.S. and China have also been at odds over China’s access to advanced AI chips such as those from Nvidia (NVDA) and Advanced Micro Devices (AMD).
Chinese analysts have said Beijing has become concerned that any Western equipment could be hacked by foreign powers. China has therefore sought to replace Western computer equipment and word-processing software, the report added.
China’s largest cybersecurity companies include 360 Security Technology and Neusoft.
Some of the U.S. and Israeli companies facing a ban for their part have in the past alleged Chinese hacking operations, which China has denied. Last month, Check Point published a report on an alleged Chinese-linked hacking operation against an unidentified “European government office.” In September 2025, Palo Alto put out a report alleging a Chinese hacking effort aimed at diplomats worldwide, according to the report.
Fortinet has three offices in mainland China and one in Hong Kong, as per its website. Check Point’s website lists support addresses in Shanghai and Hong Kong. Broadcom lists six China locations, while Palo Alto lists five local offices in China, including one in Macau, the report noted.