Beijing Tells Chinese Firms to Stop Using US, Israeli Cybersecurity Software, Sources Say

Reuters
01/14

Jan 14 (Reuters) - Chinese authorities have told domestic companies to stop using cybersecurity software made by roughly a dozen firms from the U.S. and Israel due to national security concerns, two people briefed on the matter said.

Broadcom-owned VMware, Palo Alto Networks and Fortinet are among the U.S. firms whose cybersecurity software has been banned, while Check Point Software Technologies is among the Israeli companies, they said.

Shares of Palo Alto Networks, Fortinet fell about 3% each on the news; Check Point fell nearly 1%.

Reuters was not able to establish how many Chinese companies received the notice, which the sources said was issued in recent days.

Chinese authorities expressed concern that the software could collect and transmit confidential information abroad, said the sources, who declined to be named due to the sensitivity of the situation.

China's internet regulator, the Cyberspace Administration of China, and the Ministry of Industry and Information Technology had not responded to requests for comment at the time of publication. The four companies also did not reply to Reuters queries.

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