Overview
- Two people briefed on the matter told Reuters that Chinese authorities issued a recent notice instructing domestic companies to stop using cybersecurity software from roughly a dozen U.S. and Israeli vendors.
- Initial names included Broadcom-owned VMware, Palo Alto Networks, Fortinet, and Israel’s Check Point Software Technologies, with follow-up reporting adding CrowdStrike, SentinelOne, Mandiant, Wiz, Recorded Future, McAfee, Claroty, Rapid7, CyberArk, Orca Security, Cato Networks, and Imperva.
- Sources said officials fear the tools could collect confidential data or be exploited to transmit information abroad.
- The Cyberspace Administration of China and the Ministry of Industry and Information Technology did not comment, and Reuters could not determine how many companies received the notice or how it will be enforced.
- Some affected vendors saw share-price pressure in early trading, including a nearly 3 percent premarket drop for Fortinet, as investors assessed potential sales disruption.