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China Opens Cybersecurity Review of Palo Alto Networks

Framed as safeguarding critical information infrastructure, the probe signals tougher scrutiny of foreign tech that could repeat the commercial limits imposed on Micron.

Overview

  • The Cyberspace Administration of China formally opened the review on Thursday and said it was checking products sold in China for risks to critical information infrastructure and national security.
  • The regulator did not name which products are under review, did not list alleged vulnerabilities, and gave no timeline or immediate enforcement steps.
  • Beijing has earlier this year ordered domestic firms to stop using cybersecurity tools from several U.S. and Israeli vendors, a move that set the stage for this formal review.
  • Analysts note the 2023 CAC review of Micron led to directives that effectively barred some Micron server chips from Chinese data centres, showing how opaque reviews can produce major commercial loss.
  • The probe comes after a series of recent Chinese measures against U.S. firms and tighter export controls, and it could force Chinese customers to shift to domestic alternatives and further reshape supply chains.