Overseas Revenue Analysis of China Cybersecurity Listed Companies (2025)
- Z-ONE TEAM
- Jun 2
- 28 min read
Z-ONE
Executive Summary
In 2025, China’s cybersecurity industry officially entered a phase of deep structural adjustment. As policy-driven growth momentum in the domestic market continues to weaken, competition within the existing market intensifies, and overall industry profitability remains under pressure, overseas markets are gradually evolving from a “strategic option” into a key driver of long-term growth.
At present, more than 30 publicly listed Chinese companies are engaged in cybersecurity-related businesses, covering multiple segments including security hardware, security software, data security, cloud security, industrial cybersecurity, identity and access management, as well as integrated security services. Based on financial disclosures and public information released in 2025, it is possible to observe the broader internationalization trends of China’s cybersecurity industry, its regional expansion patterns, and the practical challenges companies face in global market development.
It should be noted that not all listed companies have established substantial overseas business execution capabilities, and some companies have yet to separately disclose overseas revenue or international business data in their financial reports. Therefore, the scope of this report is primarily based on publicly available annual reports, investor communication materials, and other public disclosures, with a focused analysis on 16 representative listed cybersecurity companies.
Based on a review of financial disclosures and globalization strategies, it can be observed that Chinese cybersecurity vendors are undergoing a critical transition from “product export” to “capability export,” and from “opportunity-driven expansion” to “systematic global operations.” Compared with earlier international business models centred on channel sales and project delivery, an increasing number of companies are beginning to establish localized teams, regional partnership networks, and long-term service capabilities, while gradually participating in overseas digital infrastructure, security operations, and ecosystem development.
This transition not only reflects the evolving role of China’s cybersecurity industry in the global market but also highlights the emerging growth logic and international competitive landscape faced by Chinese security technology companies amid the restructuring of global digitalization and cybersecurity demand.
At present, the global expansion of Chinese cybersecurity companies is demonstrating three core characteristics.
First, regional focus continues to converge. Corporate resources are increasingly concentrated in high-certainty markets such as Southeast Asia and the Middle East, gradually forming a globalization framework centred around countries participating in the Belt and Road Initiative. Companies such as Sinovatio, Qi An Xin, NSFOCUS, and AsiaInfo Security serve as representative examples. Southeast Asia has evolved from a “pilot market” into a “long-term operational market,” while the Middle East is emerging as a new growth region characterized by both high contract values and elevated localization requirements.
Second, the core capabilities underpinning international competition are evolving. AI enablement, SASE, cloud-native security, data security, and global security operations capabilities are gradually replacing traditional hardware-centric offerings as the primary drivers of international competitiveness. The industry’s globalization model is also shifting from one-time product sales toward sustained service and operational capability delivery.
Third, overseas operating models are undergoing structural change. The industry is transitioning from a relatively extensive model reliant on channel distribution and project-based delivery toward a more organized globalization phase characterized by “localized operations + ecosystem collaboration + long-term regional development.” Corporate priorities are correspondingly shifting from pure overseas revenue expansion toward regional service capability, ecosystem integration, and long-term operational resilience.
Overall, the international expansion of China’s cybersecurity industry is moving from a phase of “scale expansion” to one of “quality-driven competition.” Building on these trends, the following sections will further examine overseas revenue structures, regional deployment, capability evolution, and potential challenges based on listed company disclosures and publicly available data.
01 Industry Macro Landscape
Slowing Domestic Growth Drives Global Expansion as a Core Strategic Pathway
China Market: Traditional Growth Drivers Reaching an Inflection Point
Over the past decade, the growth of China’s cybersecurity industry has been primarily driven by policy incentives, including classified protection regulations, critical information infrastructure development, and digital procurement initiatives from government and enterprise sectors, all of which collectively supported rapid industry expansion.
By 2025, this growth model is undergoing a structural shift. On one hand, budget growth among government and enterprise customers has slowed significantly, while traditional compliance-driven deployment is gradually reaching maturity. On the other hand, increasing product and service homogenization across the industry has intensified price competition, placing sustained pressure on corporate profitability.
The industry is exhibiting three defining characteristics: the gradual saturation of incremental markets, intensified competition within existing markets, and the need to restructure corporate growth models. An increasing number of vendors are facing structural challenges, including slowing revenue growth, declining profit margins, and high customer concentration.
Integrity stated in its annual report that the global cybersecurity industry is currently at a critical stage where “challenges and opportunities coexist.” The company noted that, amid changing market conditions, security investment willingness among key downstream industries has weakened, placing pressure on overall industry growth. As a result, the cybersecurity sector is shifting away from a previous focus on scale expansion toward a new stage centred on “high-quality and sustainable development.” The company also emphasized that, with the rapid iteration of AI technologies, attackers are increasingly leveraging AI to accelerate code generation and social engineering attacks, rendering traditional detection methods less effective. Demand for “intelligent and systematic defence systems” is therefore rising rapidly. This observation not only reflects changes in industry demand structure, but also highlights the sector’s transition from “compliance-oriented security” toward “substantive defence capabilities.”
Sangfor reflected similar structural changes from an operational perspective. In its annual report, the company stated that current growth is primarily driven by cloud business, overseas markets, and domestic key-account (KA) customers, while traditional markets remain under pressure. The company further indicated that it will continue increasing investment in KA customers, leading industry clients, and overseas markets, while strengthening its solution and organizational capabilities for large-scale customers. This suggests that the cybersecurity industry is gradually shifting from a growth model driven by standardized products toward a competitive landscape centred on “high-value customers + integrated capability delivery.”
FEITIAN also noted in its annual report that overseas revenue contribution has continued to increase in recent years. At the same time, the company emphasized that intensified international competition, trade barriers, and exchange-rate volatility are significantly increasing the complexity of global operations. The company stated that it will continue strengthening overseas customer development and international marketing capabilities. This trend indicates that even for companies with relatively mature international operations, globalization has evolved from simple revenue expansion into a broader competition involving long-term operational and risk management capabilities.
Sinovatio more directly reflects the industry’s globalization transition. The company stated in its annual report that it will continue deepening its international market development strategy by expanding overseas marketing teams, strengthening regional outreach capabilities, and enhancing localized operational systems. According to the company, regional representative offices will be established in key Asia-Pacific markets, while a “tiered partnership + ecosystem co-development” approach will be adopted to build an international operating framework covering strategic markets. The company also emphasized that it is leveraging large-model capabilities from its AI innovation lab to strengthen product competitiveness, while optimizing mobile signal collection and analysis products for complex overseas mobile network environments to improve global market adaptability.
Sangfor also provided representative commentary regarding overseas strategy. In its annual report, the company explicitly stated that it will continue prioritizing investment in overseas markets in 2026, while further improving product quality and adaptability to enhance Sangfor’s international brand influence and overseas market share. The company additionally highlighted plans to deepen customer management systems and strengthen organizational and professional capabilities for serving large overseas clients and leading industry customers.
These developments collectively indicate that globalization is no longer merely an “optional strategy” for Chinese cybersecurity companies, but is increasingly becoming a core pathway for overcoming growth constraints and rebuilding long-term competitiveness.
Global Market: Digitalization and AI Reshape Cybersecurity Demand
At the same time, the global cybersecurity market is entering a new cycle of demand expansion.
From the demand side, the continued acceleration of global digitalization and intelligent transformation — including cloud migration, AI adoption, cross-border data flows, and smart infrastructure development — is driving sustained growth in cybersecurity demand. Meanwhile, the large-scale globalization of Chinese enterprises is also fueling rapid growth in “accompanying security expansion” requirements, including capabilities related to cross-border network connectivity, global cloud security, data compliance, overseas SOC operations, as well as SASE and zero-trust architectures. In particular, the continued expansion of Chinese manufacturing companies, internet platforms, cross-border e-commerce firms, and cloud service providers across Southeast Asia, the Middle East, and Latin America is creating a natural customer base for Chinese cybersecurity vendors.
At the same time, the gradual maturity of technologies such as AI, large language models, SASE, and SD-WAN is reshaping global cybersecurity service delivery models. Traditional cybersecurity has long relied on localized hardware deployment and delivery-intensive models, whereas trends toward cloud-based, software-defined, and AI-driven architectures are significantly reducing the cost of global expansion while improving remote delivery and scalable replication capabilities.
Nova Tech stated in its annual report that it is advancing the global deployment of its SD-WAN solutions through a pure software licensing model while deeply embedding AI capabilities into its NOC and SOC frameworks to establish an integrated “Network + Security + AI Operations” architecture. This represents a typical evolution within China’s cybersecurity industry, where globalization is increasingly shifting from product exports toward the export of operational and technological capabilities. According to the company’s annual report, Nova Tech is extending its capabilities beyond its self-developed SD-WAN and SASE platforms into Managed Detection and Response (MDR) services, creating a unified operating model that integrates networking, security, and AI-driven operations. By embedding large AI models into its NOC and SOC environments, the company aims to transition from reactive response to predictive security operations, leveraging AI to automate threat assessment and policy orchestration while improving operational efficiency and service quality. At the same time, Nova Tech is reducing reliance on traditional hardware through a software-centric licensing model. Through software licensing, technology partnerships, and co-branding initiatives, the company is building ecosystems with overseas telecom operators and managed service providers (MSPs), enabling the rapid replication of its domestically validated cloud-network-security solutions across international markets and supporting customers’ global secure connectivity requirements.
Sinovatio similarly reflects the growing convergence of AI and globalization strategies. The company noted in its annual report that it continues to optimize its portable and vehicle-mounted mobile signal collection and analytics products to address the increasingly complex and dynamic nature of overseas mobile network environments. By leveraging the large-model capabilities developed through its AI Innovation Enablement Laboratory, the company aims to strengthen product competitiveness and improve adaptability across diverse deployment scenarios. At the same time, Sinovatio stated that it will reinforce localized overseas operations through a “tiered partnership and ecosystem co-development” model, while establishing representative offices in key Asia-Pacific markets to build a more structured regional operating framework. The company further emphasized that it continues to advance product innovation and solution upgrades by integrating the large-model capabilities of its AI Innovation Enablement Laboratory, enhancing core product competitiveness and strengthening the overall capability portfolio of its offerings.
Compared with traditional models reliant on hardware sales and project-based delivery, an increasing number of Chinese cybersecurity vendors are leveraging AI capabilities, cloud-native architectures, and software-driven delivery systems to upgrade their global operating models. This also indicates that the international competitive logic of China’s cybersecurity industry is evolving from “hardware export” toward “continuous operational capability delivery.”
02 Overseas Revenue Landscape in 2025
Industry Stratification Accelerates as Leading Players Further Consolidate Their Advantage
Industry Stratification Accelerates as Leading Players Further Consolidate Their Advantage
In 2025, overseas business revenue among China’s publicly listed cybersecurity companies continued to expand overall. From the perspectives of overseas revenue scale, growth momentum, and contribution to total revenue, the industry has begun to exhibit an increasingly distinct tiered structure.
High-Growth Tier: Technology-Driven Global Expansion Accelerates
In 2025, incremental overseas revenue continued to concentrate among companies with strong technological barriers, platform-based capabilities, and deep regional operational expertise. More broadly, China’s cybersecurity industry has entered a new phase of global competition — shifting from the question of “whether to expand overseas” to “who possesses stronger globalization capabilities.”
Sinovatio recorded the industry’s highest overseas revenue growth rate at 68.88%, emerging as one of the most notable global expansion stories of the year. In its annual report, the company emphasized its continued commitment to internationalization, positioning its Singapore subsidiary, T-INNOWARE, as a global service hub for government and enterprise markets to strengthen global resource coordination and ecosystem development capabilities. The company also highlighted that, through AI-enabled mobile signal collection and analytics products, alongside continuous optimization for complex overseas network environments, it has secured strategic customer breakthroughs across multiple markets in Asia-Pacific and Africa.
The company noted that “the Asia-Pacific region has steadily evolved into a strategic growth engine for the company’s overseas business.” Leveraging T-INNOWARE as its global government and enterprise market service center, Sinovatio has strengthened global resource integration and ecosystem collaboration, providing strong support for the deeper expansion of its overseas operations. In Africa, core regional business maintained stable growth while the company achieved market entry breakthroughs in several previously untapped markets. In the Asia-Pacific region, deeper localization of channel networks and iterative improvements in its marketing system significantly increased penetration in key national markets.
Nova Tech represents another important globalization pathway through its “cloud-network-security integration” model. The company has established 72 global network nodes and built partnerships with 66 overseas telecom operators, forming a global network resource system spanning Southeast Asia, Europe, the United States, and the broader Asia-Pacific region. More importantly, the company is moving beyond the traditional model of selling networking products, instead building long-term service-oriented capabilities centred on SD-WAN, SASE, and AI-driven operations.
According to its annual report, the company’s self-developed SD-WAN software has entered overseas channel ecosystems through a pure software licensing model, representing a critical transition from product exportation to technology enablement. The company further highlighted breakthroughs in SASE functionality development, including the launch of a “transparent mode” architecture that enables seamless upgrades of networking and security capabilities without requiring changes to customers’ existing infrastructure. By combining SD-WAN-based application recognition, intelligent acceleration, and security protection with seamless integration between gateways and LAN environments, the company aims to reduce deployment and migration costs while improving operational agility for global enterprises.
NSFOCUS continued to deepen its presence across ASEAN, the Middle East and Africa (MEA), and Latin America (LATAM). The company emphasized that, through its independently operated global cloud security platform, it is now capable of delivering high-value services — including cloud-based traffic scrubbing, intelligent security operations, threat intelligence, and attack surface management — to large overseas enterprises and government institutions.
NSFOCUS also highlighted that its collaboration with local partners has enabled the accumulation of international operational experience, while active participation in global cybersecurity competitions and engagement with international frontier security technologies have strengthened the interaction between domestic and overseas innovation capabilities. The company noted that it serves a broad portfolio of global clients, including four of the world’s five largest financial institutions and six of the world’s top ten telecom operators, as well as customers across insurance, retail, healthcare, critical infrastructure, and government sectors.The company continues to expand globally with a strategic focus on ASEAN, MEA, LATAM, Hong Kong, and Macau, leveraging the broader influence of the Belt and Road Initiative to deepen the international expansion of its cybersecurity business.
This broader trend suggests that China’s cybersecurity globalization is evolving from a phase defined primarily by product sales competition into one increasingly shaped by comprehensive capability-based competition.
Stable-Growth Tier: Mature Global Operating Systems Support Long-Term Expansion
Compared with the high-growth cohort, companies within the stable-growth tier are distinguished not by short-term acceleration, but by the maturity of their global operating models and the resilience of their long-term international business capabilities.
From the perspective of absolute scale, Wangsu Science & Technology, Sangfor Technologies, and Feitian Technologies currently form the core first tier of overseas revenue generation within China’s cybersecurity industry.
Wangsu ranked first in the industry with overseas revenue of approximately RMB 2.313 billion, with overseas business contributing nearly 50% of total revenue.
Sangfor ranked second with approximately RMB 599 million in overseas revenue, representing year-on-year growth of 24.49%.
Feitian remained among the industry leaders with approximately RMB 356 million in overseas revenue, while overseas business accounted for more than 50% of total revenue, making it one of the most internationalized publicly listed cybersecurity companies in China.
A defining characteristic of this cohort is that overseas business is no longer dependent on individual projects or short-term market opportunities. Instead, these companies have established mature globalization frameworks spanning products, channels, customer operations, localized delivery, and risk management. As a result, compared with the broader industry, their international businesses demonstrate stronger stability and greater counter-cyclical resilience.
Sangfor’s growth trajectory reflects a typical model driven by the coordinated expansion of cloud transformation, internationalization, and key account management.
In its annual report, the company noted that: “During the reporting period, benefiting from favorable industry-wide developments in cloud computing, as well as the company’s continued investment and expansion in overseas markets and domestic key account (KA) markets, revenue from cloud business, overseas markets, and domestic KA markets achieved rapid growth, driving total operating revenue to RMB 8.043 billion, representing year-on-year growth of 6.96%.”
Unlike traditional cybersecurity vendors that rely heavily on single-product sales, Sangfor places greater emphasis on integrated solution capabilities and large-scale customer management systems.
The company further stated that it will continue to prioritize investment in overseas markets, enhance product quality and adaptability, and strengthen international brand influence and global market share. This suggests that its globalization strategy is evolving from a phase of “market expansion” toward one of “systematic market deepening.”
Feitian represents another form of stable globalization strategy — long-term cultivation of overseas channels and financial security markets.
With overseas revenue accounting for more than 50% of total revenue, the company ranks among the most internationalized players in the industry.
Unlike companies that only recently accelerated global expansion efforts, Feitian has maintained sustained investment in overseas markets for many years and has already established a relatively stable international customer base and channel network.
In its annual report, the company emphasized that it has consistently prioritized overseas market development and has actively participated in major international exhibitions over the years. At the same time, the company acknowledged that intensifying international competition, trade barriers, and foreign exchange fluctuations are increasing the complexity of overseas operations. As a result, it plans to further strengthen core customer relationship management and global risk management capabilities. This reflects a broader industry shift in which globalization competition is evolving from a pure focus on revenue growth toward a more comprehensive competition centred on long-term operational capability and global risk control.
Wangsu represents the globalization pathway of infrastructure-oriented cybersecurity and cloud service providers.
As one of the companies with the largest overseas revenue scale in the industry, Wangsu has established a global intelligent service network spanning Asia, North America, South America, Europe, the Middle East, and Africa through its worldwide edge node infrastructure and localized operational teams.
The company stated in its annual report that:
“Leveraging edge nodes deployed across Asia, North America, South America, Europe, Oceania, and Africa, as well as branch offices and local teams established in Singapore, South Korea, Japan, the United States, and Malaysia, the company has built a global intelligent service network for customers.”
“In overseas markets, the company adopts a strategy centred on ‘global resource integration and regional deepening,’ enabling the establishment of a highly flexible global intelligent network platform designed to ensure consistency and seamlessness in customers’ global business access experiences.”
Compared with traditional cybersecurity vendors, Wangsu’s globalization capabilities are more heavily rooted in infrastructure deployment and global delivery systems. Its core competitiveness derives from long-term global network resource deployment, localized service capabilities, and cross-regional operational systems.
Such capability barriers typically require long investment cycles and significant capital expenditure to establish, but once formed, they create substantial long-term competitive advantages.
Adjustment and Optimization Tier: International Trade Barriers and Multi-Dimensional Compliance Constraints
As the overseas operations of Chinese cybersecurity companies continue to expand, uncertainty in international markets is also rising in parallel. Fluctuations in overseas demand cycles, tightening regional regulations, non-tariff trade barriers, and foreign exchange volatility are increasingly becoming core variables affecting the stability of global operations.
Feitian explicitly highlighted potential risks associated with overseas operations in its annual report:
“In the future, intensified competition in overseas markets, trade barriers, and external trade frictions may have a significant adverse impact on the company’s international sales, potentially resulting in slower growth or declines in overseas revenue. In addition, as overseas revenue continues to expand, the company’s operating performance may become increasingly affected by exchange rate fluctuations.”
As one of the representative companies in the industry with overseas revenue accounting for more than 50% of total revenue, Feitian’s risk disclosure is highly indicative of broader industry dynamics. This suggests that for highly internationalized Chinese cybersecurity vendors, overseas markets are no longer merely a source of growth, but are increasingly becoming a critical factor influencing overall operational stability.
At the same time, the phased adjustment undertaken by Wangsu reflects another category of challenges emerging as globalization strategies enter a deeper stage of execution.
Although overseas business still accounted for nearly 50% of total revenue, the company’s overseas revenue declined by 18.68% year-on-year in 2025. In its annual report, the company emphasized that:
“The company continues to advance its strategy of global resource integration and regional deepening, while strengthening localized service capabilities in key markets.”
Behind this statement lies a broader strategic shift: the focus of globalization is evolving from scale expansion toward improving regional operational efficiency, strengthening localized service systems, and enhancing global resource coordination capabilities.
Against the backdrop of intensifying global competition and increasingly fragmented regional demand, companies are placing greater emphasis on improving the quality and long-term stability of overseas operations.
From an industry-wide perspective, the core trend reflected by the adjustment and optimization tier is that the globalization logic of China’s cybersecurity industry is shifting from an “opportunity-driven” model toward one centred on “long-term operations under risk constraints.”
Companies are no longer focused solely on expanding overseas market coverage and revenue scale. Instead, they are placing increasing importance on supply chain resilience, regional compliance capabilities, data security governance, and localized ecosystem collaboration.
Behind short-term revenue fluctuations lies the transitional cost of building long-term global operating systems, strengthening risk resilience, and restructuring participation in the global value chain.
03 Global Regional Landscape
Dual Growth Engines Emerge in Southeast Asia and the Middle East
In 2025, the overseas expansion strategies of Chinese cybersecurity companies shifted noticeably from broad-based market coverage toward focused market penetration and deeper regional engagement.
The industry is increasingly evolving toward a regional structure characterized by Southeast Asia as the foundational growth base, the Middle East as a high-value growth engine, Latin America and Africa as emerging expansion markets, and Hong Kong and Macau as strategic hubs for global operations.
Southeast Asia: The Most Mature and Predictable Overseas Market
Southeast Asia has emerged as the overseas market with the highest level of penetration and the strongest growth visibility for Chinese cybersecurity vendors.
Multiple publicly listed cybersecurity companies identified Southeast Asia as a priority strategic market in their annual reports.
Sinovatio stated that it has continued to improve market penetration in key countries through deeper channel localization and the ongoing evolution of its regional marketing system. AsiaInfo Security identified Singapore as its global operations hub, with a strategic focus on Hong Kong, Macau, and Southeast Asian markets. Meanwhile, Qi-Anxin Technology Group noted that it is using Indonesia as a foundation for expansion into broader ASEAN markets, including Malaysia.
Wangsu noted: “Taking Southeast Asia as an example, continued growth in internet users, increasing penetration of internet applications, and the rapid development of the digital economy are expected to sustain long-term growth in regional internet traffic. Digitalization and intelligent technologies have become key enablers of enterprise globalization.”
VRV stated that it has adopted a “customized services + localized operations” model for international expansion, establishing a regional footprint centred on Southeast Asia while extending into the Middle East. The company highlighted the deployment of Linkdood, its international secure communication platform, in markets such as Malaysia, as well as its participation in CYDES 2025, where it showcased secure communications and AI security solutions. The company also reported tangible progress in cross-border digital services and regional government collaboration initiatives across ASEAN markets.
At the same time, companies including Wangsu, Nova Tech, and VRV all highlighted the strategic importance of Southeast Asia in their annual reports. Overall, Southeast Asia is no longer merely an incremental overseas growth market. Increasingly, it is becoming a strategic anchor for Chinese cybersecurity companies as they build long-term global operating capabilities and expand their international presence.
The Middle East: A High-Value, High-Barrier Growth Engine
Compared with Southeast Asia, the Middle East is characterized by higher contract values, stronger government and enterprise demand, and significantly higher localization requirements.
WebRAY stated in its annual report that it has established a strategic partnership with the Saudi Arabia branch of China Unicom and is actively pursuing deeper collaboration within the Saudi cybersecurity market.
WebRAY noted: “The company has established an international business division dedicated to expanding overseas markets. It has entered into a strategic partnership with China Unicom Saudi Arabia to jointly advance cybersecurity initiatives in the Kingdom. At the same time, the company has actively engaged with institutions across the Middle East and showcased its AI-enabled cybersecurity defense framework at GITEX GLOBAL, attracting significant attention from international stakeholders.”
Meanwhile, QAX has continued to strengthen its localization efforts in the Middle East, including hosting its first regional channel partner conference to enhance ecosystem collaboration and partner engagement.
According to the company, “In overseas markets, we have strengthened local operations in the Middle East and successfully held our first channel partner conference. In Southeast Asia, we continue to consolidate our position in Indonesia while expanding into ASEAN markets such as Malaysia. In Latin America, we are accelerating expansion into new markets, including Brazil and Nicaragua.”
Notably, the competitive dynamics of the Middle Eastern market are evolving. The traditional model centred primarily on channel distribution is gradually giving way to a deeper globalization approach built on long-term local operations, ecosystem partnerships, and sustained market engagement.
For Chinese cybersecurity vendors, the Middle East is no longer simply a source of revenue growth; it is increasingly becoming a critical proving ground for demonstrating global operating capabilities, localization expertise, and ecosystem-building capacity.
04 Evolution of Global Expansion Models
From Product Exports to Organization-Led Globalization
The Core Logic of Globalization Is Shifting from Sales-Led Growth to Capability-Led Expansion
In 2025, the most significant development in the globalization of China’s cybersecurity industry was not simply the expansion of overseas revenue, but the structural evolution of globalization models themselves. The industry is transitioning away from traditional approaches centred on hardware exports, project-based engagements, and channel distribution toward a new globalization framework built around cloud platforms, AI capabilities, security operations, and ecosystem collaboration.
At its core, this transformation reflects a broader shift in global cybersecurity demand. As the complexity of cross-border business operations continues to increase, customers are placing greater emphasis on long-term operational capabilities, global delivery capacity, and localized service support. As a result, standalone product sales are becoming increasingly insufficient as a source of sustainable competitive advantage.
Sinovatio stated in its annual report that it is actively advancing a “tiered partnership and ecosystem co-development” model, while planning to establish representative offices in key Asia-Pacific markets to create a regional operating framework that expands from strategic anchor markets to broader regional coverage. This reflects a broader shift in which globalization is evolving from project-based expansion toward the development of long-term organizational capabilities.
Sinovatio noted: “In overseas markets, leveraging localized ecosystem development and solution customization capabilities, the company achieved strategic customer breakthroughs across Asia-Pacific and African markets, while the number of countries covered by its business operations increased year-on-year.”
AI and the Convergence of Cloud, Network, and Security Are Emerging as New Competitive Differentiators for Chinese Vendors
AI is increasingly becoming a defining capability that differentiates Chinese cybersecurity vendors from their traditional Western counterparts.
Nova Tech stated in its annual report that it is deeply integrating large AI models into its Network Operations Center (NOC) and Security Operations Center (SOC) frameworks, enabling a transition from reactive response to predictive security operations through automated threat analysis and policy orchestration. At the same time, companies including 360 Security Technology, Sangfor Technologies, and Integrity Technology Group have all highlighted the transformative impact of AI on their security product architectures.
360 noted: “The company will further increase investment in overseas market expansion, optimize international channel strategies and localized operating capabilities, and enrich its portfolio of intelligent hardware products for global markets. Leveraging the combined strengths of cybersecurity and AI, the company aims to enhance product value, expand its international business footprint, and establish new drivers of long-term growth.”
Sangfor stated: “Guided by the principle of delivering cybersecurity that is simple, effective, and reliable, the company has introduced Security Paradigm 2.0, built around AI-driven intelligence and cloud-enabled capabilities. Through an ‘open platform + best-of-breed components + cloud services’ architecture, Sangfor aims to provide customers across industries with a more advanced cybersecurity experience.”
Integrity Tech noted: “Without cybersecurity, there can be no national security. Driven by geopolitical tensions, slowing global economic growth, inadequate enterprise security preparedness, and the accelerating impact of AI technologies, ransomware and advanced cyberattacks continue to occur at elevated levels globally, increasing awareness of substantive compliance requirements among both government and enterprise users.”
Nova Tech stated: “Building upon its self-developed SD-WAN and SASE platforms, the company is expanding into Managed Detection and Response (MDR) services to establish an integrated ‘network + security + AI operations’ capability. By deeply embedding large AI models into NOC and SOC systems, the company aims to evolve from reactive response to predictive security operations, using AI to automate threat assessment and policy orchestration while improving operational efficiency and service quality. In parallel, the company is reducing reliance on traditional hardware through a software licensing model. By combining software licensing, technology partnerships, and co-branding initiatives with overseas telecom operators and managed service providers (MSPs), Nova Tech seeks to rapidly replicate its domestically validated cloud-network-security solutions in international markets and support customers’ global connectivity and security requirements.”
AsiaInfo Security stated: “The company is actively pursuing growth opportunities arising from telecom operator innovation and the expanding computing services market, including computing resource scheduling, multi-cloud management, computing rights management, agent-based internet services, token-based billing, transaction and settlement systems, and digital identity authentication. Regionally, the company is using Hong Kong as a strategic gateway to deepen its presence in Hong Kong and Macau while expanding its international telecom operator business. On the customer side, it is exploring new opportunities with emerging operators such as China Tower, China SatNet, and China Broadcasting Network.”
Compared with traditional Western cybersecurity vendors, Chinese companies are increasingly developing a more efficient and cost-effective globalization model built around cloud-network-security convergence, software-defined delivery, and AI-driven security operations.
Looking ahead, the combination of AI and integrated cloud-network-security capabilities is likely to emerge as one of the most distinctive and competitive global strengths of China’s cybersecurity industry.
Local Operating Capabilities Are Becoming a Critical Determinant of Globalization Success
As globalization efforts deepen across the industry, the importance of localized operating capabilities is increasing rapidly. More companies are placing strategic emphasis on building local teams, establishing regional operating hubs, developing overseas channel ecosystems, and strengthening localized service delivery capabilities.
Wangsu stated that it will continue strengthening local sales and service support teams in key international markets. AsiaInfo Security has identified Singapore as its global operations hub, while EmbedWay has established a Hong Kong subsidiary to support overseas business development and international strategic cooperation.
Wangsu stated: “The company will continue leveraging the synergies between its domestic and international markets, accelerate the globalization of its full product portfolio, improve the performance and utilization efficiency of overseas service platforms, strengthen localized team development in key international markets, and further expand its overseas business footprint.”
AsiaInfo Security stated: “The company has formally launched its globalization strategy, with Singapore serving as its global operations hub. By deepening its presence in Hong Kong, Macau, Southeast Asia, and other priority markets, the company aims to provide strong technical support and localized services to customers, capture security demand arising from global industrial digital transformation, and build intelligent, secure, and trusted digital foundations for enterprises and critical industries worldwide, thereby creating new growth opportunities.”
EmbedWay stated: “In January 2025, the company established its wholly owned subsidiary, EmbedWay (Hong Kong) Limited. The initiative is intended to better support overseas business expansion, strengthen engagement and cooperation with international markets, and enhance the company’s global strategic positioning through closer coordination between domestic and international operations. The subsidiary will gradually assume responsibility for existing overseas business contracts while also serving as a platform for new market development.”
Sinovatio stated: “As part of its global expansion strategy, the company leverages its Singapore subsidiary, T-INNOWARE, as a global government and enterprise market service center, strengthening global resource coordination and ecosystem development capabilities to support the deeper expansion of overseas business. In Africa, performance in core markets continued to grow steadily, while the company achieved first-time market entry in several previously untapped countries. In Asia-Pacific, deeper channel localization and ongoing enhancements to the marketing system significantly improved market penetration in key countries, enabling the region to steadily evolve into a strategic growth engine for the company’s overseas business.”
Taken together, these developments suggest that the globalization of China’s cybersecurity industry is moving beyond an export- and sales-driven model and entering a new phase defined by localized operations, regional execution capabilities, and long-term market stewardship.
05 Key Risks and Constraints
Globalization Is Entering a New Phase of High-Complexity Competition
Geopolitical Risks Continue to Intensify
As the strategic importance of cybersecurity continues to increase, geopolitical developments, supply chain security, and evolving international regulatory environments are becoming critical variables shaping the global expansion of Chinese cybersecurity companies. Against the backdrop of global technology supply chain realignment, increasing emphasis on data sovereignty, and intensifying competition surrounding critical infrastructure security, the risks faced by cybersecurity companies are expanding beyond traditional commercial competition into broader strategic challenges involving technology, supply chains, and policy frameworks.
360 explicitly stated in its annual report that U.S. sanctions and changes in global supply chains continue to affect the company’s international operations:
“As a cybersecurity company subject to sanctions from both the U.S. Department of Commerce and the Department of Defence, the company may face increased operating costs and procurement-related risks in certain overseas businesses.”
The company further noted:
“In recent years, increasingly complex international dynamics, accelerating global supply chain restructuring, and frequent geopolitical conflicts have disrupted a range of critical industrial supply chains, including those supporting computing infrastructure. These developments may further increase the difficulty and cost of acquiring resources required for the company’s AI and digital security businesses, while adding uncertainty and operational cost pressures.”
These disclosures highlight a broader reality: for Chinese cybersecurity companies, globalization is no longer solely a matter of market competition. Increasingly, it has evolved into a multidimensional contest centred on supply chain security, technology trustworthiness, critical infrastructure access, and international regulatory frameworks.
Against this backdrop, some companies have begun proactively adjusting their international business portfolios to reduce exposure to highly sensitive sectors and mitigate geopolitical risks. 360 stated in its annual report:
“The company will continue monitoring changes in the external environment and actively pursue risk mitigation measures, including localized substitution strategies, to support sustainable business development.”
At the same time, the company is strengthening its strategic focus on AIoT and intelligent hardware. According to the annual report:
“In response to the deep integration of intelligent hardware and AIoT technologies, the company remains committed to its vision of ‘security-driven intelligence’ and continues to explore innovative AIoT applications built around cybersecurity as a core competitive advantage.”
The company further stated:
“In the future, the company will further expand its international market presence, optimize overseas channel strategies and localized operating capabilities, and broaden its intelligent hardware product portfolio for global markets. By leveraging the combined strengths of cybersecurity and AI, the company aims to enhance product value, expand overseas business scale, and establish new engines of growth.”
360 is gradually extending its cybersecurity capabilities into AIoT and intelligent device ecosystems, pursuing international expansion through more standardized, scalable, and commercially accessible product offerings. To some extent, this approach reduces dependence on highly sensitive government and enterprise markets while improving channel scalability and regional adaptability across overseas markets.
Overall, rising geopolitical risks are prompting Chinese cybersecurity companies to reassess their globalization strategies. Looking ahead, international competitiveness will depend not only on product capabilities but also on a company’s ability to build resilient supply chains, develop localized alternatives, strengthen global compliance frameworks, and establish sustainable international operating capabilities.
Operational Risks in Overseas Markets Are Increasing Significantly
Compared with the domestic market, overseas cybersecurity markets are generally characterized by longer project cycles, greater regional variation, and higher revenue volatility.
Sinovatio noted in its annual report that the extended implementation cycles associated with overseas cybersecurity projects create significant uncertainty around the timing of large contract acquisition, execution, and acceptance.
Sinovatio stated: “The company’s network content security products are currently primarily targeted at overseas markets. However, due to differences among countries in demand for cybersecurity and information security systems, project scope, and implementation progress, project cycles tend to be lengthy. Given the relatively limited number of countries in which the company is currently engaged, the acquisition, execution, and acceptance of large contracts may vary significantly across reporting periods, resulting in considerable uncertainty on an annual and quarterly basis.”
At the same time, Feitian highlighted that trade frictions, intensifying international competition, and foreign exchange fluctuations could place increasing pressure on overseas revenue performance.
Feitian stated: “In recent years, overseas revenue has maintained rapid growth and accounted for an increasing share of the company’s total revenue. Looking ahead, intensified competition in international markets, trade barriers, and external trade frictions may have a material adverse impact on the company’s export business, creating the risk of slower growth or declines in overseas revenue.”
As the industry enters a more advanced stage of globalization, success increasingly depends not only on sales execution capabilities but also on the ability to build sustainable regional operations, manage complex market dynamics, and maintain robust risk management frameworks over the long term.
Compliance and Localization Requirements Continue to Intensify
As global trends toward stricter data regulation and digital sovereignty continue to strengthen, requirements related to cross-border data transfers, privacy protection, local certification, and industry-specific regulation are significantly increasing the complexity of global operations for Chinese cybersecurity companies. Compared with the earlier phase of globalization, which was largely centred on product exports, international markets now expect cybersecurity vendors to demonstrate not only technological capabilities, but also robust data governance frameworks, localized compliance capabilities, intellectual property management, and regional service delivery systems. As a result, an increasing number of companies are prioritizing the development of international operating teams, localized product adaptation, and region-specific compliance frameworks.
Information2 Software stated in its annual report that it will continue investing in overseas market expansion while adapting and optimizing its products to meet the regulatory requirements of different countries and regions, thereby improving product competitiveness and market suitability. At the same time, the company is strengthening international partnerships and data protection frameworks while promoting more flexible delivery models to provide data replication and disaster recovery solutions for overseas financial institutions, enterprises, and government customers. This reflects a broader shift among Chinese data security vendors, whose globalization strategies are evolving from traditional product delivery models toward long-term operating frameworks centred on global data governance and localized compliance capabilities.
AsiaInfo Security similarly demonstrates a strong commitment to localized operations.
The company stated that it will use Singapore as its global operations hub while focusing on Hong Kong, Macau, and Southeast Asia, leveraging localized technical support and service capabilities to capture security demand arising from industrial digital transformation and intelligent upgrades in overseas markets. The company stated that it will use Singapore as its global operations hub while focusing on Hong Kong, Macau, and Southeast Asia, leveraging localized technical support and service capabilities to capture security demand arising from industrial digital transformation and intelligent upgrades in overseas markets.
At the same time, an increasing number of companies are establishing overseas subsidiaries, regional operating hubs, and local technical teams to enhance their ability to adapt to evolving regulatory environments and customer requirements across international markets. For example, Topsec established subsidiaries in Hong Kong and Macau in 2025, while EmbedWay launched its Hong Kong subsidiary to strengthen international market collaboration and improve coordination across overseas operations.
Looking ahead, competitive differentiation in the global cybersecurity market will increasingly depend not only on product capabilities but also on a company’s ability to establish robust international compliance frameworks, localized operating capabilities, and sustainable data governance systems. Compliance capabilities are therefore evolving from a traditionally back-office support function into a strategic infrastructure layer that plays a critical role in shaping globalization quality, operational resilience, and long-term international competitiveness.
06 Outlook for 2026
The Globalization of China’s Cybersecurity Industry Is Entering a Deeper Phase of Development
Regional Expansion Strategies Will Become Increasingly Targeted
Looking ahead, the dual-growth-engine structure centred on Southeast Asia and the Middle East is expected to become more firmly established. Southeast Asia will likely remain the primary driver of scale expansion, while the Middle East is expected to emerge as an increasingly important source of high-value and high-margin opportunities. At the same time, Africa and Latin America are well-positioned to become the next wave of incremental growth markets.
AI and Integrated Cloud-Network-Security Capabilities Will Become Core Competitive Moats
The industry's competitive focus is expected to shift from standalone security products toward AI-driven security operations, SASE architecture capabilities, and globally integrated cloud-network-security platforms. Companies capable of delivering AI-enabled automation, global remote service delivery, and software-based deployment models will be better positioned to build sustainable, long-term competitive advantages.
Ecosystem-Led Global Expansion Will Continue to Accelerate
Collaboration among telecom operators, cloud providers, and cybersecurity vendors is expected to deepen significantly in the coming years. Increasingly, companies will pursue international growth through joint solutions, regional partnerships, and ecosystem alliances. As a result, the globalization of China’s cybersecurity industry is evolving from an individual-company approach toward a more coordinated, ecosystem-driven model of international expansion.
Risk Management Capabilities Will Become a Defining Factor of Globalization Quality
As the complexity of globalization continues to increase, risk management capabilities are becoming a critical determinant of long-term success. Companies will need to develop localized operating capabilities, regional risk diversification mechanisms, supply chain resilience, and robust international compliance frameworks simultaneously. Ultimately, global competitiveness will be defined not solely by product performance, but by the strength and maturity of a company’s overall operating system.
07 Conclusion
In 2025, the globalization of China’s cybersecurity industry entered a new stage of development. International expansion is no longer merely a supplementary source of revenue; instead, it has become a core driver of long-term growth, a manifestation of technological globalization capabilities, a pathway toward brand internationalization, and a key force reshaping industry structure.
Looking ahead, the global competitiveness of Chinese cybersecurity companies will no longer be determined by standalone product capabilities alone. Instead, it will be defined by the integrated strength of technological innovation, global operating capabilities, localized ecosystem collaboration, and risk management capabilities.
Global competition in China’s cybersecurity industry remains at an early stage. The most transformative phase of this wave of globalization may, in fact, have only just begun.
08 About Author
Z-ONE is the first market research and accelerator institution focused on the cybersecurity industry in China. Based on the latest cybersecurity technology developments and comprehensive long-term industry research, Z-ONE publishes a series of insight reports, a quick search engine for China cybersecurity technology, and a business maturity rating of the cybersecurity sector. The services of Z-ONE include business strategy consulting, branding and GTM strategy planning, sales and talent recruitment, international and domestic competitive analysis, etc.
09 About THE COI
THE COI (Cybersecurity Observatory Institute) is an independent, non-profit research institute dedicated to the sustained observation and systematic epistemic study of the global cybersecurity ecosystem as a structured, multi-layered industry.
Established for academic and public-interest purposes, THE COI does not engage in vulnerability trading, technology production, commercial services, or compliance enforcement. Instead, it operates as a neutral observatory—examining how cybersecurity capabilities are generated, commercialized, institutionalized, and governed across different sectors and jurisdictions.
By systematically mapping actors, roles, and interactions across the sectors of cybersecurity, THE COI develops analytical frameworks, ecosystem models, and research outputs intended to support informed decision-making by users, institutions, and policymakers.
THE COI is independent by structure.
Its role is not to participate, but to observe, study, and clarify the complexities of an evolving global cybersecurity landscape.
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