The Cyberspace Administration of China (CAC) launched a formal national security review of products sold by Palo Alto Networks. Beijing initiated the probe to protect critical information infrastructure and mitigate cybersecurity risks.
The Cybersecurity Review Office is conducting the investigation under China's National Security Law and Cybersecurity Law. This move increases regulatory pressure on foreign technology suppliers as Beijing intensifies scrutiny of their domestic operations.
Palo Alto Networks shares declined in premarket trading following the announcement.