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Ji Siqi

Ann Cao

Ben Jiang

Beijing has launched a cybersecurity review into products sold in China by US technology firm Palo Alto Networks, the Cyberspace Administration of China announced on Thursday.
The administration said the probe was being conducted to “ensure the secure and stable operation of critical information infrastructure, prevent cybersecurity risks and vulnerabilities, and safeguard national security”.
Palo Alto Networks is a leading US cybersecurity and cloud computing provider, whose solutions are used by tens of thousands of clients in industries ranging from finance to technology and energy.
The move comes just a day after Beijing imposed sanctions on a string of US companies and tightened controls over the drone supply chain, stating the measures were a response to earlier US actions that had harmed China’s interests.
Last week, Washington effectively banned the import and sale of foreign robotic devices and power inverters – two sectors where Chinese companies are leading players – and imposed sanctions on dozens of Chinese entities.
China and the United States have been locked in an uneasy “trade truce” for months, with both sides looking to avoid a renewed tariff war while racing to “de-risk” their economies by plugging holes in their supply chains that could be weaponised by the other side.
Palo Alto Networks has maintained a significant presence in the Chinese market, operating multiple offices in cities including Beijing, Shanghai and Guangzhou. Its solutions include advanced firewalls, cloud-native security platforms and global threat intelligence.
The firm is the latest US tech company to face regulatory scrutiny in China amid rising geopolitical tensions. In 2023, Beijing’s internet watchdog launched its first-ever cybersecurity review into a foreign company, targeting US memory chip giant Micron Technology.
After two months, the investigation concluded that Micron had failed the review, citing severe cybersecurity issues that posed risks to China’s supply chain. Micron has been banned from selling to operators of critical information infrastructure in China ever since.
The Palo Alto Networks probe is likely “both an exercise of existing national security mechanisms … and a response to the current landscape of international technological competition”, said Shi Shenchang, a lawyer focusing on export controls at the Shanghai-based Co-Effort Law Firm.
Judging from past practices and relevant laws, Palo Alto Networks could face a similar ban to Micron if it fails the review, according to Shi. That would significantly affect the firm’s market share in China in sectors such as finance, energy, telecommunications and transport, but its regular commercial clients in China might not face a direct impact, Shi added.
Palo Alto Networks did not immediately respond to a request for comment.
Xiang Ligang, a Chinese telecoms industry veteran and founder of the tech portal cctime.com, said it was “normal” for China to launch a security probe into a foreign provider operating in such a sensitive industry.
Given the US Federal Communications Commission recently took several actions to review or restrict Chinese products, Beijing was expected to take “appropriate action on a reciprocal basis”, Xiang said.
Though Palo Alto Networks generates a relatively small share of its revenue from China, its equipment could still raise security concerns if used in telecoms networks, according to Xiang. “Products used directly for cybersecurity clearly warrant scrutiny,” he said.


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The move comes just a day after Beijing imposed sanctions on a string of US firms and tightened controls over the drone supply chain


The move comes just a day after Beijing imposed sanctions on a string of US firms and tightened controls over the drone supply chain.


China launches probe into Palo Alto Networks as US trade tensions intensify

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The move comes just a day after Beijing imposed sanctions on a string of US firms and tightened controls over the drone supply chain

The move comes just a day after Beijing imposed sanctions on a string of US firms and tightened controls over the drone supply chain