China's Cyberspace Administration (CAC) has launched a review into the security of products made by US firm Palo Alto Networks, stating it is needed to protect critical infrastructure and safeguard national security, without providing further detail. The move echoes Beijing's unexplained 2023 probe into memory-maker Micron, which ultimately resulted in an effective ban on Micron's sales to Chinese critical infrastructure operators and cost the company billions in revenue while boosting domestic rivals.

Palo Alto Networks said it maintains high standards of security and conduct globally and reported no current impact on its ability to serve customers or deliver products in China. China hosts competitors such as Huawei and H3C that overlap with Palo Alto's offerings, though Palo Alto does not disclose country-specific revenue, making any potential financial impact hard to estimate. Beijing has previously accused Western tech firms of aiding US surveillance, an accusation The Register suggests could resurface in this case, mirroring similar claims Western governments make against Huawei and ZTE.