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Palo Alto Networks Faces Chinese Cybersecurity Investigation

China's Cyberspace Administration said the investigation aims to protect critical infrastructure, prevent cybersecurity risks and safeguard national security.

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China has launched a cybersecurity review of products sold by U.S.-based Palo Alto Networks, marking the latest escalation in technology tensions between Beijing and Washington, reported by the South China Morning Post.

China's Cyberspace Administration said the investigation aims to protect critical infrastructure, prevent cybersecurity risks and safeguard national security.

The probe comes a day after Beijing imposed sanctions on several U.S. companies and tightened export controls on drones in response to recent U.S. restrictions on Chinese firms and products.

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According to the report, Palo Alto Networks operates offices across China and provides cybersecurity and cloud security solutions to industries including finance, telecommunications and energy.

Legal experts told the publication that if the company fails the review, it could face restrictions similar to those imposed on Micron Technology in 2023, which was later barred from supplying operators of China's critical infrastructure.

The report said Palo Alto Networks had not responded to requests for comment, while Chinese analysts described the investigation as a reciprocal response to recent U.S. actions.

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