(Aug 6): China launched a formal security review of products sold in the country by US technology firm Palo Alto Networks Inc, ramping up pressure on the company months after accusing it of harbouring links to intelligence services.

The Cyberspace Administration of China said in a statement on Thursday that the review was necessary to protect critical infrastructure, citing a pair of national security laws. Shares in Palo Alto Networks fell as much as 4.2% before later paring losses in pre-market trading.

Beijing accused a host of American and Israeli firms including Palo Alto Networks earlier this year of being connected to spy agencies, though it didn’t provide evidence of those claims. At the time, a government directive seen by Bloomberg News, which also named Fortinet Inc and Check Point Software Technologies Ltd, said that Chinese companies’ use of US and Israeli cybersecurity products could result in sensitive data being sent overseas.

The government told Chinese organisations to identify whether they use any cybersecurity products from the designated companies and to replace any of those with domestic technologies by the first half of 2026.

Palo Alto Networks didn’t immediately respond to a request for comment. The company has multiple offices in China, including locations in Beijing, Shenzhen, Shanghai and Guangzhou, according to its website.

Its threat intelligence arm, Unit 42, has published a body of research on Chinese hacking operations, including a report last year that accused them of breaching email servers of foreign ministers as part of a years-long effort targeting the communications of diplomats around the world.

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