China Launches Cybersecurity Review of Palo Alto Networks Products
China has launched a cybersecurity review of products sold by U.S.-based cybersecurity company Palo Alto Networks, marking another step in Beijing’s tightening oversight of foreign technology suppliers operating in the country. The announcement, made by the Cyberspace Administration of China (CAC) on Thursday, comes as trade and technology tensions between China and the United States continue to shape regulatory decisions affecting global businesses.
The regulator said the review focuses on risks linked to critical information infrastructure and national security. However, it did not specify which Palo Alto Networks products are under examination, identify any alleged vulnerabilities, or indicate what action the company could ultimately face.
CAC Cites National Security Laws
The Cyberspace Administration of China said it launched the review under the country’s national security and cybersecurity laws. Even so, the agency offered few details about the scope of the investigation.
China has increasingly examined foreign technology providers while encouraging the use of domestic alternatives. Officials have repeatedly argued that imported technology deployed in sensitive networks could expose important data or critical infrastructure to overseas security risks.
As a result, scrutiny of overseas technology companies has become a key feature of China’s cybersecurity and national security framework.
Rising Trade and Technology Frictions
The latest review arrives amid continuing trade and technology disputes between Beijing and Washington. Although recent high-level bilateral summits produced an uneasy truce, tensions between the two countries remain elevated.
On Wednesday, China’s commerce ministry announced a series of restrictions targeting U.S. companies and exports of drones destined for the United States. The ministry described those measures as countermeasures to recent U.S. restrictions affecting Chinese companies’ access to the American market.
However, the CAC did not state whether its review of Palo Alto Networks was connected to the commerce ministry’s latest actions.
Palo Alto Networks, headquartered in Santa Clara, California, did not immediately respond to a request for comment.
Previous Restrictions on Foreign Cybersecurity Firms
The latest development follows earlier measures affecting foreign cybersecurity suppliers. In January, Chinese authorities instructed domestic companies to stop using cybersecurity software from more than a dozen U.S. and Israeli companies, including Palo Alto Networks.
The current review also mirrors the regulator’s action against U.S. memory-chip manufacturer Micron Technology in 2023. Following that investigation, the CAC concluded that Micron’s products had failed its cybersecurity review. Consequently, operators of China’s critical information infrastructure were instructed to stop purchasing the company’s products because of national security concerns.
Since then, Micron has stopped supplying server chips to data centres in China after the business failed to recover from the restrictions. Nevertheless, the company continues to sell products to some Chinese customers, including those in the automotive and mobile phone sectors.
Palo Alto Networks offers network, cloud and other cybersecurity products. According to its website, the company maintains offices in Beijing, Shanghai, Guangzhou, Shenzhen and Macau.
The company does not separately report revenue or market share for China. Instead, it includes sales from the country within its broader Asia-Pacific and Japan reporting region.
With inputs from Reuters
