Chinese authorities instructed local companies to halt the use of cybersecurity software from several U.S. and Israeli firms. The directive specifically targets Broadcom’s VMware, Palo Alto Networks, and Fortinet.
Officials cited national security concerns as the basis for the action. They worry the software could collect confidential data and transmit it internationally.
The action underscores escalating technology and data security tensions between China and the United States. While the number of affected Chinese companies remains unclear, the directive poses a potential risk to Broadcom’s revenue. China represents a significant global market for technology products and services, impacting Broadcom’s market position.