Chinese authorities have instructed domestic companies to phase out cybersecurity software made by several US and Israeli firms, citing national security risks, sources familiar with the matter said on Wednesday. The move marks Beijing’s latest effort to reduce reliance on Western technology as geopolitical tensions with Washington intensify.
Read More: China blasts US for cyber attacks on Chinese university
Companies affected include Broadcom-owned VMware, Palo Alto Networks and Fortinet, as well as Israeli provider Check Point Software Technologies. Shares of some of the listed firms dipped in premarket trading, with Fortinet sliding nearly 3 percent.
#BREAKING
Reuters, citing sources:
Beijing asks Chinese companies to stop using U.S. & Israeli cybersecurity software – @AlarabyTV📌Beijing is telling domestic firms to stop using certain U.S. & Israeli cybersecurity tools
📌Names cited: VMware $AVGO, Palo Alto Networks… pic.twitter.com/qnixLrerPX— ⚡️🌎 World News 🌐⚡️ (@ferozwala) January 14, 2026
Sources said Beijing fears foreign-made security software could transmit sensitive data abroad or be vulnerable to exploitation by foreign intelligence agencies. China has already spent years replacing Western hardware, office systems and cloud tools with domestic alternatives as part of a broader “tech autonomy” strategy.
China’s cybersecurity market is dominated by local players such as 360 Security Technology and Neusoft, which analysts say stand to benefit from the latest directive. The shift comes as Western governments impose export controls targeting China’s semiconductor and artificial intelligence industries.
In a parallel development, US chipmaker Nvidia received approval to sell its advanced H200 artificial intelligence processors to Chinese customers under new restrictions outlined by the US Commerce Department. The policy, announced by President Donald Trump last month, allows sales if certain supply requirements are met, though its most powerful chips remain off-limits.
However, questions remain over Chinese demand for Nvidia products. Reports indicate Beijing has urged domestic firms to buy more homegrown AI accelerators and has limited approvals for imported chips to research institutions and development labs.
Read More: China firmly opposes, combats any form of cyber attacks: Zhao Lijian
The H200 approval followed an agreement between Trump and Chinese President Xi Jinping in December that gives the US government a 25 percent share of Nvidia’s China sales. Observers say the arrangement reflects both sides’ attempts to manage strategic competition while securing access to key technologies.