China has reportedly banned several American and Israeli cybersecurity firms. According to a report by the news agency Reuters, Chinese authorities told local companies to stop using cybersecurity software from about a dozen foreign providers due to national security concerns. The ban includes US companies like Broadcom-owned VMware, Palo Alto Networks, and Fortinet. Officials stated they are concerned the software could “collect and transmit confidential information abroad.”The move follows recent efforts by Beijing to replace Western technology with domestic alternatives. China has also reportedly named the Israeli company Check Point Software Technologies in the directive. The report cited sources to claim that the notice was issued in recent days amid growing trade and tech tensions between China and the US. However, Reuters didn’t specify how many Chinese companies received the notice, which the report said was issued recently.
Why China is concerned with US cybersecurity software
The Reuters report cited people familiar with the matter to claim that Chinese officials were worried that the software offered by these companies may collect secret information and send it to other countries. The report didn’t identify the sources who didn’t want to give their names, because the topic is sensitive.China’s internet regulator, the Cyberspace Administration of China, and the Ministry of Industry and Information Technology also didn’t respond to requests for comment when this was published. The four companies also didn’t respond to Reuters’ questions.As the US and China compete for technology leadership while their relationship remains tense, Beijing has been working hard to replace Western technology with Chinese-made alternatives.While efforts to develop its computer chip and artificial intelligence industries have received the most attention, China has also been trying to replace Western computers and word-processing software.Chinese experts have also said that Beijing is increasingly worried that Western equipment could be broken into by foreign governments.Recently, China rejected Nvidia CEO Jensen Huang’s advice to buy chips, as the Chinese government made it very hard for tech companies to purchase Nvidia’s H200 AI chips.China reportedly told some tech companies that they can buy these chips only in special cases, such as university research. The Chinese government’s instructions to companies wasn’t clear as they were told to buy chips only when “necessary”, but what “necessary” means wasn’t explained.This shows China is still being very careful about allowing the American chip company Nvidia back into the Chinese market. The government plans to meet with more companies to give them the same instructions, but it’s unclear whether they’ll provide clearer guidance in those meetings.
