Chinese authorities have instructed domestic firms to stop using cybersecurity software from more than a dozen US and Israeli companies due to national security concerns, according to three sources.

The ban affects firms including Palo Alto Networks, Fortinet, Broadcom-owned VMware, CrowdStrike, SentinelOne, Recorded Future, McAfee, Rapid7, Claroty, Imperva, and Alphabet’s Mandiant and Wiz, as well as Israeli companies Check Point Software Technologies, CyberArk, Orca Security, and Cato Networks.

Regulators cited fears the software could be used to collect and transmit sensitive data abroad.

Some affected companies, including CrowdStrike, SentinelOne, and Claroty, said they do not have significant business in China, while Orca Security said it had not been notified.

Shares of several firms dropped after news of the ban, with Broadcom down over 4%, Fortinet down over 2%, and Rapid7 down over 1%.

The move comes amid ongoing tensions between China and the US over technology and trade.

🔗 Source: Reuters