China has warned Chinese companies not to purchase cybersecurity solutions of a dozen US and Israeli companies out of concern that national security will be harmed, Reuters” reports, according to two people briefed on the matter. The US companies mentioned in the report include Palo Alto Networks, Fortinet, and Broadcom.
Check point’s share price is down 2% in premarket trading following the report.
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What’s been weighing on Check Point?
It is not possible to know how much revenue Palo Alto produces in China, but its revenue from the entire Asia-Pacific region – including Australia and Japan – constitutes about 12% of total revenue. The corresponding figure for Check Point is 13%. According to the report, a “dozen” cybersecurity software companies are affected, and based on the size of the companies, it can be assumed that these are the largest companies, so the impact on smaller cybersecurity companies is not substantial. Furthermore, many Israeli cybersecurity companies choose not to work in China, as most prefer to work with US federal agencies that prohibit any contact with China.
Furthermore, most of them help monitor private and government Chinese hacker groups and warn about them in various studies. Last month, Check Point published a report on a Chinese-linked hack of a government office in Europe, and in September, Palo Alto Networks published a report on Chinese cyberattacks on diplomats around the world.
The lion’s share of the Chinese cybersecurity industry belongs to Chinese companies like 360 Security and Neusoft.
Published by Globes, Israel business news – en.globes.co.il – on January 14, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.
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