China launches cybersecurity review into Palo Alto Networks products

China has initiated a cybersecurity review of products sold by U.S.-based firm Palo Alto Networks, citing potential risks to critical infrastructure and national security, according to the country's cyberspace regulator. The Cyberspace Administration of China (CAC) launched the review under China's national security and cybersecurity laws but did not specify the affected products, the alleged vulnerabilities, or the potential actions Palo Alto might face.

Beijing has been intensifying scrutiny of foreign technology suppliers while pushing for domestic alternatives, warning that imported products in sensitive networks could expose data or critical infrastructure to overseas risks. This move follows a series of trade and technology tensions between Beijing and Washington, threatening an uneasy truce reached at recent high-level bilateral summits.

The CAC has not confirmed if Palo Alto's review is linked to the commerce ministry's measures. Palo Alto, headquartered in Santa Clara, California, has not yet commented on the issue. In January, Chinese authorities ordered domestic companies to cease using cybersecurity software from over a dozen U.S. and Israeli firms, including Palo Alto, Reuters reported earlier this year.

The regulator's latest action mirrors its 2023 review of U.S. memory-chip maker Micron Technology. After the ban, Micron halted server chip supplies to China's data centers, switching to other markets like automotive and mobile phone sectors. Palo Alto sells a range of cybersecurity products and operates offices in Beijing, Shanghai, Guangzhou, Shenzhen, and Macau, according to its website.

The company does not disclose separate China revenue or market share figures, reporting its China sales under the broader Asia-Pacific and Japan region.