China Opens Cybersecurity Probe of Palo Alto Networks Amid US Trade Tensions

The probe of the U.S. cybersecurity firm came a day after Beijing announced a flurry of retaliatory actions against Washington’s trade curbs.

A sign above an office of the Cyberspace Administration of China (CAC) in Beijing on July 8, 2021. Thomas Peter /Reuters

The Chinese communist regime has launched a formal investigation into products sold by U.S. cybersecurity giant Palo Alto Networks within the country.

The Cyberspace Administration of China, the regime’s top cyber regulator, announced the decision in a brief notice on Aug. 6, without specifying which products will be subjected to the security review. The agency described the move as necessary to protect “critical information infrastructure,” prevent cybersecurity risks, and safeguard national security.

The California-headquartered Palo Alto Networks didn’t immediately respond to a request for comment.

The company states on its website that it has four offices in mainland China—in Beijing, Shanghai, Guangzhou, and Shenzhen—and one in Macau.

The probe into Palo Alto Networks was announced just a day after the regime’s commerce ministry tightened export controls on drones to the United States and sanctioned multiple American companies. A ministry spokesperson called the measures a response to Washington’s recent technology curbs and blacklisting of more than 40 Chinese companies over forced labor concerns.

The regime’s cyberspace administration did not specify whether the probe into Palo Alto Networks is linked to the broader retaliation efforts.

It remains to be seen what the consequences of this review will be.

In 2023, the regime’s cyberspace administration told major Chinese information infrastructure operators to stop buying products from U.S. chipmaker Micron, claiming its products failed the agency’s security review.

The agency said at the time that it found serious security risks in Micron’s products, which could threaten China’s information infrastructure supply chain and national security, although it didn’t provide details on what risks it had found.

The White House said Beijing’s allegation against Micron was “just baseless” and a retaliation for a joint statement by leaders of the Group of Seven that condemned the regime’s economic coercion.

Amid tensions with the West, the Chinese regime has stepped up scrutiny over foreign tech companies in the name of security, fueling concerns among investors and business executives.

Beijing’s announcement also came after cybersecurity experts and government agencies linked multiple global hacking operations to the Chinese regime.

Researchers from Palo Alto Networks’ Unit 42, the company’s cyberthreat intelligence team, have published multiple reports on hacking campaigns linked to Beijing. In a September 2025 report, for instance, Unit 42 publicly identified a China-linked advanced persistent threat (APT) that it had been tracking since 2022.

Dubbed Phantom Taurus, the hacking group was found to have attempted to steal sensitive and classified information related to diplomatic and economic missions, military operations, political meetings, governmental agencies—including foreign ministers—and high-ranking officials in the Middle East, Africa, and Asia.

Catherine Yang contributed to this report.