China Shuts Out U.S.-Israeli Cybersecurity Firms in 2027 Tech Overhaul

China's latest tech blockade extends beyond software to cybersecurity, targeting U.S. and Israeli vendors in a calculated move toward digital self-reliance by 2027.

Chinese entities are reportedly barred from using U.S. and Israeli cybersecurity vendors including VMWare (Broadcom), Palo Alto Networks, Fortinet, and Check Point Software, according to Reuters citing two unnamed individuals briefed on the matter. This enforcement aligns with the Xinchuang initiative, which aims for 100% foreign software replacement in state-owned companies by 2027.

The 2022 Document 79 explicitly mandates the removal of foreign software from critical systems such as office automation, HR, CRMs, ERPs, and hardware. This directive forms part of broader U.S. - China tech tensions, including China's investments in chip-making and recent restrictions on Blackwell chips.

While enforcement timelines remain unspecified, the policy reflects an informal 'Delete America' directive accelerating tech decoupling. State-owned enterprises are expected to adopt domestic alternatives, reshaping global cybersecurity vendor strategies.