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Qihoo 360

Qihoo 360 Technology Co. Ltd., commonly known as 360 or Qihoo 360, is a Beijing-headquartered technology company specializing in and solutions. Founded in , it pioneered the provision of free comprehensive security products in , disrupting traditional paid antivirus models through a approach that prioritizes user acquisition via zero-cost software. The company's core offerings include flagship products such as 360 Safe Guard for PC optimization and multi-engine antivirus protection, 360 Anti-Virus, secure browsers like 360 Safe Browser, and applications, alongside and enterprise solutions. It monetizes its vast user base—exceeding 400 million for internet services and over 460 million monthly active users for —primarily through , search referrals, and value-added services like web games and . This strategy has positioned Qihoo 360 as China's leading provider of consumer software, with nearly 10,000 patents underscoring its technological contributions to detection and . Qihoo 360 has achieved notable milestones, including contributions from 13 researchers to Microsoft's top 100 list in and sustained dominance in domestic market share for free tools. However, it has encountered significant controversies, particularly international regulatory actions; in June 2020, U.S. authorities added affiliated entities to the , citing reasonable cause for involvement in PRC-supported malicious cyber operations targeting and information access. The company has rebutted such claims, attributing scrutiny to its reports on foreign attempts against , while continuing operations amid restrictions and ongoing debates over its practices and data handling.

History

Founding and Early Growth (2005–2010)

Qihoo 360 Technology Co. Ltd. was incorporated on June 9, 2005, in the as an exempted company with , initially under the name Qihoo Technology Co. Ltd.. The company was co-founded by Zhou Hongyi, former president of China from 2003 to 2005, and Qi Xiangdong, with Zhou serving as chairman and CEO.. Zhou, who had previously sold his startup 3721 to and gained experience in 's internet sector, sought to address growing threats amid rapid internet expansion, where Chinese users numbered around 111 million by late 2005.. In March 2006, Zhou and associates invested approximately 20 million USD in the venture, enabling product development.. The company's first major product, 360 Safe Guard (360安全卫士), launched in July 2006 as a free comprehensive security solution offering malware scanning, system optimization, and vulnerability protection, marking Qihoo's entry into the competitive antivirus market dominated by paid software from rivals like Jiangmin and Rising.. This freemium approach—providing core features without cost while reserving advanced options for paid upgrades—differentiated Qihoo from incumbents, leveraging aggressive marketing and superior detection rates to attract users wary of paid alternatives amid China's burgeoning PC adoption.. Adoption accelerated as China's user base expanded from 137 million in to 457 million by , with 360 Safe Guard achieving dominance through frequent updates and cloud-based scanning introduced in later versions.. By July 2007, it had become China's largest security software by monthly , surpassing competitors via word-of-mouth and partnerships with PC vendors for pre-installation.. Continued growth saw 360 Safe Guard protecting over 286 million users—76% of netizens—by September , establishing Qihoo's market leadership through empirical effectiveness against prevalent threats like trojans and .. This period laid the foundation for Qihoo's , though early challenges included resource constraints and competition from established players.

Expansion into Core Products and IPO (2011–2015)

In March 2011, Qihoo 360 Technology Co. Ltd. completed its initial public offering on the , raising $175.6 million by issuing 12.1 million American depositary shares priced at $14.50 each. Trading commenced on March 30, 2011, under the QIHU, with shares rising 134% on the debut day to close at $33. The IPO proceeds supported product development and market expansion, following revenue growth of 78.5% to $57.7 million in 2010. At the time of the IPO filing, Qihoo 360's core security products—360 Safe Guard as the flagship comprehensive suite and 360 Anti-Virus—served 328 million monthly active users in 2011, representing 83.9% penetration among Chinese users. These offerings emphasized protection, system optimization, and privacy tools, driving user acquisition through free distribution while monetizing via and features. In March 2011, shortly after the IPO, the company launched 360 Desktop Apps, a centralized PC application emulating stores to aggregate and distribute software. Expansion extended to mobile and enterprise segments. By 2013, Qihoo 360 introduced 360 Mobile Safe for device protection against viruses and privacy risks, alongside international variants like 360 Mobile Security. In February 2013, it secured a contract to supply enterprise-grade solutions—including anti-malware, traffic monitoring, and performance tools—to China's Ministry of Commerce. In 2014, the firm released , integrating multiple antivirus engines for enhanced detection. By May 2015, it unveiled SkyEye, China's first domestically developed system targeting advanced persistent threats via behavioral analysis and threat intelligence. The period ended with a privatization deal in December 2015, where a agreed to acquire the company for approximately $9.3 billion, delisting it from the NYSE to refocus on domestic growth amid intensifying competition. This expansion solidified Qihoo 360's dominance in China's market, with core products evolving from PC-centric tools to multi-platform solutions supporting hundreds of millions of users.

Maturation and AI Integration (2016–2025)

In July 2016, Qihoo 360 completed its privatization from the New York Stock Exchange in a transaction valued at approximately $9.3 billion, led by founder Zhou Hongyi and a consortium of investors, marking a strategic pivot to facilitate domestic relisting and operations amid U.S. regulatory pressures on Chinese firms. Later that year, in August, the company established an AI research institute focused on applications in smart driving and autonomous technologies, signaling an early commitment to integrating artificial intelligence into its core security ecosystem. This period also saw expansion through acquisitions, including the purchase of a majority stake in Opera Software for $600 million in July 2016, enhancing its browser and mobile capabilities. By 2018, preparations advanced for relisting in , with the company pursuing a return to domestic markets via a structure to bypass restrictions, culminating in a successful listing on the STAR Market in June 2021 through a reverse merger. Between 2017 and 2022, Qihoo 360 matured its offerings in and enterprise solutions, investing in over 70 startups including and cybersecurity ventures, while maintaining dominance in consumer antivirus with hundreds of millions of users. The company emphasized , leveraging proprietary data for specialized models rather than general-purpose ones, as advocated by Zhou Hongyi, who argued that domain-specific approaches yield superior results in contexts. Qihoo 360 accelerated integration starting in 2023, unveiling self-developed large models (s) tailored for cybersecurity, with Zhou Hongyi demonstrating prototypes at industry forums and announcing plans for generative products to drive . In June 2023, its became the first in to pass appraisal by the China Academy of Information and Communications Technology (CAICT), validating its technical efficacy in threat detection and response. By early 2025, the firm deepened collaborations, integrating DeepSeek's models into its QAX security platform and Anxing intelligent system for enhanced enterprise threat hunting, while deploying swarms at the ISC. 2025 to automate against advanced persistent threats. Amid U.S. controls, Qihoo 360 endorsed Huawei's domestic chips for , prioritizing to sustain development in sanctioned environments. This evolution positioned the company as a leader in -augmented cybersecurity, with Zhou Hongyi warning that lagging in constitutes the paramount risk.

Products and Services

Core Security Software

Qihoo 360's core software encompasses its flagship offerings, 360 Safe Guard and 360 Anti-Virus, which form the foundation of the company's free antivirus solutions targeted primarily at the market. 360 Safe Guard functions as a comprehensive suite, integrating detection, system optimization, and patching into a one-stop platform. It employs cloud-based scanning and behavioral analysis to provide protection against viruses, trojans, rootkits, and other threats, while also automating Windows updates and optimizing PC through junk removal and startup management. 360 Anti-Virus complements this by focusing on dedicated virus scanning with multiple engines, including proprietary QVMII and QEX technologies that leverage a vast database exceeding 28 billion samples. This enables high detection rates for known threats, supplemented by for emerging variants. Both products adhere to Qihoo 360's model, offering core functionality for free to over 400 million users, with premium upgrades for advanced features like enhanced defense. For global users, serves as the international counterpart to 360 Safe Guard, incorporating five antivirus engines—proprietary 360 engines alongside licensed ones from and —to boost recognition rates against zero-day attacks and . Key protective mechanisms include multi-layered behavioral monitoring to block suspicious processes, filtering for malicious sites, and a dedicated decryption tool supporting over 300 variants. Privacy enhancements feature permanent file erasure, camera access controls, and , while utility tools handle , duplicate file detection, and network . Independent evaluations reveal variable efficacy in threat detection. has conducted periodic assessments, awarding certification in select tests for protection and usability, though scores fluctuate based on engine configurations. In contrast, PCMag's hands-on challenge detected only 2% of verified samples using default settings, highlighting limitations in proactive blocking despite the multi-engine approach. SafetyDetectives reported 90% detection in controlled samples, adequate for basic use but trailing premium competitors. noted effective free-tier features like sandboxing and anti-ransomware but criticized inconsistent lab performance and resource demands. These results underscore the software's strength in bundled utilities over standalone antivirus prowess, with cloud integration aiding real-time updates but dependent on server-side accuracy.

Browsers, Utilities, and Mobile Apps

Qihoo 360 develops web browsers such as the 360 Safe Browser and 360 Extreme Browser, prioritizing security and performance for users. The 360 Safe Browser, launched in September 2008, is built on the engine and incorporates features like detection, protection, and automatic rendering mode switching between and kernels for site compatibility. The company's utilities focus on system maintenance and enhancement, with 360 Safe Guard serving as its core offering for and optimization on Windows platforms. Internationally branded as , this suite integrates up to five antivirus engines—including proprietary QVM II and third-party ones from and —for comprehensive scanning, alongside tools for junk file cleanup, duplicate removal, startup management, disk analysis, and isolation of potentially harmful files. It also provides privacy utilities like , browsing history erasure, and camera access restrictions. Complementary tools include the 360 Personal Start-up Page for integrated search and navigation, and the 360 Application Desktop for streamlined app organization. On mobile, Qihoo 360's primary app is 360 Security for Android, a free utility combining antivirus protection with device optimization features such as junk clearing, RAM boosting, battery management, app locking, and anti-theft functions like remote wiping and location tracking. The app employs cloud-based scanning to detect threats including viruses and privacy risks, though independent tests have noted variable performance impacts and ad intrusions in the free version. Additionally, Qihoo 360 maintains a mobile cloud storage platform enabling file backup, synchronization, and access across devices.

AI-Driven and Emerging Offerings

Qihoo 360 has integrated into its cybersecurity products to enhance threat detection and response capabilities, providing real-time protection against , viruses, , and other online threats through AI-powered analysis. In March 2023, the company announced plans to develop a generative leveraging its strengths in processing for audio, video, images, and text, aiming to support applications such as intelligent search engines, personal AI assistants, tools for , and secure private AI services for governments and large enterprises. A key milestone came in June 2023 when Qihoo 360's 360GPT-S2-V8 large-scale became the first domestic model in to pass appraisal by the Academy of Information and Communications Technology (CAICT), evaluating capabilities including , multi-turn , , , knowledge-based , , text , translation, text rewriting, and multimodal text-to-image . Building on this, in April 2024, Qihoo 360 released the open-source 360Zhinao family of 7-billion-parameter models, including a base model and chat variants with context lengths of , 32K, and 360K tokens, designed for advanced tasks and available via public repositories. In cybersecurity, Qihoo 360 has advanced AI agent swarms to address "machine versus machine" threats, deploying coordinated AI systems that use swarm intelligence for scalable, adaptive defenses against sophisticated attacks, as demonstrated at the 13th Internet Security Conference (ISC.AI 2025) in Beijing on August 6, 2025. Emerging offerings include the 360 AI Cloud Drive, which integrates with the company's LLMs like 360Zhinao via a Model Context Protocol (MCP) server, enabling AI agents to perform file management operations such as uploading, downloading, searching, moving, renaming, deleting, and malware scanning directly within cloud storage. These developments emphasize AI-native features for secure, automated data handling in enterprise and personal environments.

Business Model and Market Dominance

Freemium Strategy and Revenue Streams

Qihoo 360 employs a model by distributing core consumer security products, including and 360 Safe , free of charge to build a massive user base primarily in . This strategy, adopted upon the company's late entry into the competitive antivirus market around , enabled it to surpass established paid-software rivals like Jiangmin and Rising by prioritizing user acquisition over initial licensing fees. The free offerings incorporate lightweight scanning, real-time protection, and utility tools, fostering dependency and high retention rates among hundreds of millions of active users. Monetization occurs indirectly through integrated and service ecosystems rather than premium upgrades for individual consumers. forms the largest revenue stream, encompassing display ads within software interfaces, browser toolbars, and search promotions via the affiliated So.com engine, which leverages user data for targeted placements. value-added services (VAS) contribute significantly, particularly through revenue-sharing arrangements with third-party game developers on 360's store and platforms, where free apps drive downloads and in-app purchases. This model evolved from early reliance on sales to consumer-scale and VAS dominance post-IPO in 2011. In recent quarters, these streams have shown robust growth amid China's expansion. For instance, in Q2 2025, internet generated $90.6 million (78% year-over-year increase), while VAS yielded $60.9 million (181% year-over-year increase), comprising the majority of total quarterly of $152 million. Trailing twelve-month as of mid-2025 reached approximately $1.12 billion, underscoring the scalability of freemium-driven traffic to and VAS. Supplementary income arises from enterprise cybersecurity solutions, such as threat intelligence and tools sold to businesses, though this remains secondary to channels.

Market Share and Competitive Edge in China

Qihoo 360 commands a substantial presence in 's consumer cybersecurity sector, particularly in PC-based antivirus and security utilities. As of the first half of 2024, its PC security products, led by , reported average daily active users exceeding 210 million. Globally, the company's core products, including , , and 360 Mobile Safe, have cumulatively covered over 1.5 billion terminals across 225 countries and regions, with the majority of its user base concentrated in . This scale underscores its entrenched dominance in the domestic market for free security software, where it has disrupted traditional paid models since introducing its flagship product in 2006. The company's competitive edge stems primarily from its pioneering , which provides comprehensive antivirus scanning, system optimization, and threat detection at no cost, attracting users wary of subscription fees from rivals. This approach enabled rapid user acquisition, outpacing incumbents like Antivirus and Rising Antivirus, whose paid structures limited accessibility amid China's price-sensitive consumer base. By 2011, Qihoo 360 had leveraged free offerings to challenge even integrated security from giants like , culminating in high-profile antitrust disputes that highlighted its disruptive impact. Revenue diversification through embedded advertising, premium features, and enterprise services—generating approximately 9.5 billion (about $1.3 billion USD) in 2022—sustains the free core while funding ongoing R&D. Further advantages include a tightly integrated product encompassing browsers, cleaners, and mobile apps, which fosters user lock-in and cross-promotion; for instance, the bundles tools, amplifying reach beyond standalone antivirus. Qihoo 360's vast data from its user base enhances real-time threat intelligence, enabling proactive defenses against localized prevalent in . Despite competition from Tencent's ecosystem-integrated and emerging players like Antiy Labs, Qihoo 360's focus on accessibility and scale has preserved its leadership in PC , though broader enterprise cybersecurity segments see stronger contest from state-backed firms like Cloud.

Security Research and Contributions

Vulnerability Research and Disclosures

Qihoo 360's security research division, including the specialized team, has conducted extensive vulnerability hunting, focusing on operating systems, browsers, and network infrastructure, with disclosures coordinated through vendor coordination or public reports prior to regulatory restrictions. The group, comprising elite researchers, has targeted high-impact flaws, such as kernel-level exploits in Windows, contributing significantly to bug bounty submissions; for instance, researcher accounted for 68% of the team's reports to in one period. A notable occurred in March 2019, when Qihoo 360 researchers detailed CVE-2019-0808, a zero-day heap-based in the Windows kernel's Win32k component that was under active exploitation by attackers, prompting a patch in the same month's updates. This vulnerability allowed local via crafted font files, highlighting the team's reverse-engineering capabilities in rendering subsystems. Qihoo 360 researchers received formal recognition for their work, including Microsoft's acknowledgment at USA 2019 of Chen (known as @guhe120) as a top contributor based on points awarded for vulnerability impact and exploitability in the company's bounty program. The firm also performed broad empirical assessments, such as a 2015 scan of over two million websites revealing 43.9% with detectable , 13% classified as high-severity, underscoring systemic weaknesses in infrastructure at the time. The company operates the 360 Security Response Center to manage incoming reports on its products and devices, while its offensive research emphasizes zero-days in third-party software, though U.S. export controls imposed in 2020 led to Qihoo 360's removal from Microsoft's vulnerability-sharing , limiting subsequent disclosures. Despite such constraints, the team's prior outputs have informed patches across vendors, demonstrating a track record of technically rigorous findings verified through exploit demonstrations.

Cyber Threat Attribution and Defense

Qihoo 360 has conducted extensive cyber threat attribution, primarily focusing on advanced persistent threats (APTs) linked to foreign state actors, with reports often aligning with national security narratives. In March 2020, the company's researchers disclosed APT-C-39, attributing an 11-year cyber-espionage campaign targeting China's —such as , institutions, and —to a hacking group operated by the U.S. (CIA), utilizing tools leaked in the Vault 7 disclosures. This attribution relied on indicators of compromise (IOCs) like samples and command-and-control infrastructure traced to CIA-linked operations, though independent Western analyses have questioned the completeness of evidence provided, noting a pattern of selective disclosure in Chinese firm reports. Subsequent reports by Qihoo 360 continued this emphasis on U.S.-origin threats. In early 2022, the firm detailed operations by APT-C-08, another alleged CIA unit, involving custom implants for long-term network infiltration in Chinese sectors. By February 2025, Qihoo 360 collaborated with Chinese state entities to attribute cyberattacks on universities like Tsinghua to the U.S. National Security Agency (NSA), citing reused IP addresses, tooling overlaps with known Equation Group tactics, and operational patterns; the report highlighted four specific IPs procured via third-party services as entry points. These attributions have supported broader Chinese claims of over 50 foreign state-sponsored hacking groups targeting the country, with Qihoo 360 claiming involvement in identifying 54 such actors by 2024, contributing to retaliatory diplomatic and cyber responses. However, critics from Western cybersecurity entities argue that such reports often lack reproducible technical artifacts or chain-of-custody details, potentially serving geopolitical signaling over empirical rigor. In cyber , Qihoo 360 leverages its attribution to enhance proactive measures, including threat intelligence sharing via its Netlab division, which tracks global APT activity and disseminates IOCs to mitigate ongoing campaigns. The company has integrated these insights into defensive tools, such as endpoint detection systems that detect Equation Group-style implants, contributing to national-level defenses in through partnerships with state cybersecurity centers. For instance, post-attribution analyses have informed vulnerability disclosures and patching recommendations, with Qihoo 360's teams reporting significant shares of zero-days to vendors like and , indirectly bolstering defenses against attributed threats. Despite these efforts, the firm's close ties to authorities raise concerns about dual-use potentially aiding offensive operations, though its outputs emphasize victim-side narratives.

Innovations in AI Cybersecurity

Qihoo 360 has integrated into its cybersecurity offerings since at least 2016, when it developed the QVM (Qihu Virus Mutation) model, an system trained on massive sample to detect evolution patterns and unknown threats through behavioral analysis rather than matching. This approach enabled proactive identification of variants, contributing to the company's detection of over 90% of zero-day threats in early tests. In 2023, Qihoo 360 launched 360GPT-S2-V8, a large-scale language model that became the first domestic LLM in China to pass the China Academy of Information and Communications Technology's (CAICT) evaluation for trustworthy AIGC large language model basic capabilities, covering 10 areas including generation, multi-turn dialogue, coding, logic, knowledge Q&A, and multimodal tasks. Tailored for cybersecurity applications, the model supports tasks like threat intelligence analysis and automated response scripting, leveraging Qihoo 360's vast dataset of network attacks. By 2025, the company advanced to agent swarms as part of its "All in " strategy, announced on to address "machine vs. machine" threats where automated attackers overwhelm human defenders. These swarms enable collaborative agents to handle 98% of alerts autonomously, integrating with human experts for complex incidents and drawing on Qihoo 360's claimed world's largest cybersecurity repository for threat attribution. Demonstrated at the 13th (ISC. 2025) on August 6, this framework supports chips for training amid U.S. restrictions on , emphasizing scalable, distributed defense against advanced persistent threats.

Ties to Chinese Government and National Security Role

Collaborations with State Entities

Qihoo 360 has engaged in formal partnerships with Chinese state agencies to advance national cybersecurity capabilities, including joint attribution of foreign cyber threats. In May 2023, the company collaborated with the Cyberspace Security Threat and Countermeasures Laboratory (CVERC), a government entity under the , to release an investigative report attributing a series of cyber intrusions to the U.S. (CIA), marking one of the first public joint efforts by a private firm and state body in offensive cyber attribution. Similarly, Qihoo 360 has assisted Chinese authorities in identifying 54 overseas state-sponsored hacking groups targeting national infrastructure, providing technical analysis that informed Beijing's defensive strategies as of August 2024. The firm leads the Cyberspace Security Military-Civil Fusion Innovation Center, an initiative blending civilian and resources to develop advanced technologies, potentially including " " units for rapid response to threats. This role aligns with China's broader strategy, where Qihoo 360 contributes expertise in vulnerability research and threat intelligence to state-led programs. Additionally, the company's security software undergoes mandatory examination and approval by the Ministry of Public Security () prior to public distribution, ensuring compliance with national standards while facilitating integration into government-monitored ecosystems. These collaborations extend to operational support for cybersecurity priorities, such as reporting a significant share of vulnerabilities discovered by Chinese researchers—nearly 70% to and 60% to between 2017 and —which bolstered domestic defenses against foreign exploitation. Qihoo 360's involvement in these efforts has positioned it as a key private-sector partner in China's framework, though U.S. assessments in cited such ties as enabling end-uses, leading to restrictions.

Contributions to State-Sponsored Cyber Defense

Qihoo 360 has contributed to China's state-sponsored defense through its integration into initiatives, including the establishment of a militia unit in focused on local , personnel training, and research into both offensive and defensive network operations. This unit supports the People's Liberation Army's Strategic Support Force by mobilizing civilian expertise to bolster national capabilities. In 2017, Qihoo 360 founded the Cybersecurity Civil-Military Fusion Innovation Center in , the first such center operated by a private firm, which provides (APT) analysis services directly to the and local governments. The company also participates in the Combined Cybersecurity , a collaboration with and other entities that trains cyber operators for military applications, having relocated hundreds of researchers to China's National Cybersecurity Center in . Additionally, Qihoo 360 serves as a partner to the China , managed by the Ministry of State Security, facilitating vulnerability disclosures that enhance domestic patching and defense. Qihoo 360's vulnerability research teams, such as 360 Vulcan and 360 SRC, reported approximately 70% of all vulnerabilities submitted by Chinese researchers to Android, 60% to Microsoft, and 31% to Apple between 2017 and 2020, enabling proactive defenses against exploits in national infrastructure. The firm has applied similar expertise domestically, including discovering a zero-day vulnerability exploited by the APT40 group a month before its public disclosure, aiding in threat mitigation. In practical deployments, Qihoo 360 contributed to the "360 City Safety Brain" initiative in Qingdao in 2021, integrating AI-driven systems for urban cybersecurity monitoring and response. The company has supported state attribution efforts by identifying over 54 overseas state-level hacking groups allegedly targeting , including those linked to the CIA and NSA, with key disclosures in 2020 revealing CIA operations against Chinese aviation, energy, and government sectors spanning a decade. In 2023, Qihoo 360 collaborated with 's National Computer Virus Emergency Response Centre to expose NSA-linked targeting a , informing defensive countermeasures. Qihoo 360 has published multiple reports attributing APT activities to U.S. entities, such as APT-C-39 and APT-C-40, providing intelligence that shapes 's national defense strategies against foreign cyber threats.

International Scrutiny and Sanctions

U.S. Designations and Restrictions (2020–2025)

In May 2020, the U.S. Department of Commerce's (BIS) added Qihoo 360 Technology Co. Ltd. to the Entity List, determining there was reasonable cause to believe the company posed a significant risk of involvement in activities contrary to U.S. or interests, specifically through of U.S.-origin commodities and technologies for military end-use in . This designation, effective , 2020, imposed a requirement for export licenses for all items subject to the (), with a policy of presumptive denial and no available license exceptions, effectively restricting U.S. suppliers from providing most technology, software, and components to the entity without prior approval. The addition aligned with broader U.S. efforts to curb transfers to entities linked to military applications, part of 33 total designations announced on May 22, 2020, targeting risks including abuses in and military modernization. Qihoo 360, a major cybersecurity firm, publicly contested the move, accusing the U.S. of politicizing commercial research and development, while officials objected to the listings as interference in internal affairs. In , the company attributed the sanction to its reports exposing alleged U.S. against targets, claiming retaliation for bolstering China's defenses. Subsequently, the U.S. (DoD) included 360 Security Technology Inc. (Qihoo 360) on its annual list of Chinese military companies operating in the United States under Section 1260H of the , with designations appearing in updates as of January 2024 and January 2025. This non-consensus list identifies entities owned or controlled by the or involved in , subjecting them to enhanced scrutiny and eventual prohibitions on certain U.S. investments starting in 2025, though it does not directly impose export controls. Qihoo 360 remained on the through 2025 without removal or modification, maintaining the export restrictions amid ongoing U.S. concerns over Chinese technology firms' dual-use capabilities.

Global Operational Impacts and Responses

The addition of Qihoo 360 Technology Co. Ltd. to the U.S. Department of Commerce's in June 2020 imposed restrictions on the export, re-export, and transfer of certain U.S.-origin items and technology to the company without a license, citing its contributions to the People's Republic of China's (PRC) strategy, military end-uses, and role in enabling abuses through technologies. These measures, expanded under subsequent U.S. administrations, limited Qihoo 360's access to American semiconductors, software, and other dual-use technologies critical for cybersecurity product development, potentially complicating global integrations involving U.S. components. However, the company's primarily domestic orientation— with over 90% of revenue derived from the Chinese market as of 2020—mitigated direct operational disruptions, as it reported no significant U.S. market presence or immediate production halts. Inclusion on the U.S. Department of Defense's Section 1260H list of Chinese military companies operating in the U.S., updated as recently as , further barred certain federal contracts and investments, indirectly affecting potential international collaborations with entities subject to U.S. extraterritorial compliance, such as multinational firms wary of risks. Overseas business expansion faced hurdles, including scrutiny from allies like the and , which aligned with U.S. export controls on high-risk Chinese vendors, leading to deprioritization of Qihoo 360 products in joint ventures or tenders requiring with Western systems. reactions were transient: Shanghai-listed shares of Qihoo 360 dipped 0.4% on the announcement day in May 2020 but stabilized, reflecting investor confidence in its insulated China-centric model amid broader U.S.- . Qihoo 360 responded by asserting that the sanctions posed only "some problems" without materially impairing core operations, emphasizing its lack of U.S. plans and on domestic alternatives for restricted technologies. executives publicly criticized the U.S. actions as "politicizing ," framing them as retaliation for Qihoo 360's cybersecurity research attributing advanced persistent threats to foreign actors, including 54 state-sponsored groups allegedly targeting since 2019. In statements through 2024, the firm highlighted accelerated investments in indigenous AI-driven defenses and partnerships with PRC state entities to offset import dependencies, positioning the restrictions as validation of its contributions rather than a deterrent to global ambitions. No major divestitures or operational pivots were reported, with focus shifting to markets less exposed to Western sanctions.

Controversies and Criticisms

Alleged Security Flaws and Backdoors

In 2010, Qihoo 360 faced allegations of installing backdoors in its antivirus software during installation, purportedly to monitor user activity and facilitate competitive sabotage against rival products. Critics, including security researchers, claimed these mechanisms allowed remote access to user data and automated uninstallation of competitors' software via cloud integration. Qihoo 360 denied the claims, asserting the features were for legitimate security updates, though independent analyses at the time highlighted opaque code behaviors raising concerns. A 2012 report by researcher Wan Tao detailed a hidden backdoor in Qihoo 360's secure browser, alleging it enabled unauthorized and software interference without user consent. Testing by third parties, including a forensic examination of browser version 1.4, found no evidence of persistent but confirmed unusual network callbacks that could be exploited for . Qihoo responded by patching the reported issues and emphasizing compliance with data protection norms, amid broader scrutiny of its practices in a competitive antivirus market. Qihoo 360 products have disclosed multiple security vulnerabilities, including buffer overflows in its Safe Guard antivirus (versions 12.1.0.1004–13.1.0.1001) that enable local . Similar flaws in Qihoo 360 browser (v13.0.2170.0) and components allow attackers to exploit remote execution or denial-of-service via crafted inputs. These issues, patched post-disclosure in 2021–2023, stem from inadequate input validation in core modules, as documented in CVE entries, underscoring risks in -level security software. In 2020, cybersecurity firm Mnemonic disclosed a hardcoded backdoor in the Xplora 4 children's , manufactured by Qihoo 360 and sold globally under (over 350,000 units). The backdoor activates via encrypted commands using a factory-set key, enabling covert features like audio (e.g., incoming call ), remote camera snapshots without indicators, and enhanced location tracking dispatched through a persistent service. Researchers attributed the implementation directly to Qihoo 360's , designed for unauthorized potentially accessible by manufacturers or entities with the device's phone number and key. Qihoo 360's designation as a U.S. addition in 2020 for risks amplified concerns over state-linked access. No public response from Qihoo addressed the backdoor's removal, though Xplora updated terms post-exposure.

Privacy Violations and Data Practices

Qihoo 360's products, including and VPN applications, have faced allegations of excessive data collection exceeding disclosed practices. In August 2025, researchers from and identified security flaws in multiple Android VPN apps covertly linked to Qihoo 360, which collectively amassed over 70 million downloads on the Store. These apps collected location-related data despite privacy policies explicitly stating they did not, employed weak or deprecated encryption protocols, and included hard-coded passwords for —a tool—enabling potential decryption of user traffic by attackers across affected apps and servers. Further concerns arose from data leaks attributed to i-SOON, a firm contracted for operations, which reportedly included personal identifiable from Qihoo 360's antivirus customers, facilitating potential tracking of activities. of the i-SOON documents, leaked in early 2024, indicated Qihoo 360 supplied this data commercially, highlighting risks in the company's handling of telemetry from its security products. Historical incidents include a December 2017 suspension of Qihoo 360's public livestreaming service for cameras following public outcry over unauthorized broadcasts of private spaces, with netizens accusing the firm of flagrant invasions despite claims of required at installation sites. In January 2011, rival accused Qihoo 360 of breaching user by leaking usernames and passwords from a company server, as demonstrated during a , though Qihoo 360 contested the claims amid ongoing competitive disputes in China's cybersecurity sector. These practices occur against the backdrop of China's National Intelligence Law (2017), which mandates cooperation with state intelligence efforts, raising systemic concerns about involuntary data sharing with authorities, though specific instances of such compliance by Qihoo 360 remain unverified in public records. U.S. sanctions since 2020 have cited Qihoo 360's military-civil fusion activities as amplifying privacy risks for global users.

Legal Disputes and Vendor Conflicts

In 2010, Qihoo 360 engaged in a high-profile conflict with Tencent known as the "3Q War," stemming from incompatibilities between Qihoo's security software and Tencent's QQ instant messaging application. Qihoo accused Tencent of privacy violations through its QQ Doctor tool, filing a lawsuit in September 2010 alleging breaches of user data security. Tencent countersued Qihoo in December 2010 for unfair competition, claiming Qihoo's 360 QQ SafeGuard software unlawfully interfered with QQ's operations by altering its functionality and prompting users to uninstall Tencent products. A Beijing court ruled in Tencent's favor in April 2011, ordering Qihoo to pay compensation and cease the interfering practices. Qihoo escalated the dispute by filing an antitrust against in November 2011, asserting that abused its dominant position in the market by refusing software compatibility and bundling practices that excluded competitors. The High People's Court dismissed Qihoo's claims in March 2013, finding insufficient evidence of market dominance or anticompetitive effects sufficient to violate China's Anti-Monopoly Law. Qihoo appealed, but the upheld the dismissal on October 16, 2014, marking China's first Supreme Court decision on abuse of dominance in the sector and emphasizing the need for plaintiffs to prove actual exclusionary harm rather than mere potential threats. In a related unfair competition ruling, the in 2014 affirmed a lower court's finding that Qihoo's software modifications constituted improper interference, rejecting arguments for a non-interference in cases. These disputes highlighted tensions between cybersecurity vendors in China's tech ecosystem, where tools often scan and flag rival software as threats, leading to mutual accusations of backdoors and unfair tactics. Government mediation in November 2010 temporarily halted the software clash, requiring Qihoo to discontinue certain products and to restore compatibility, but litigation persisted for years. Beyond domestic competitor conflicts, Qihoo faced U.S. securities litigation over its 2016 and subsequent relisting. In Altimeo Asset Management v. Qihoo 360 Technology Co. Ltd., investors alleged misleading disclosures about the process and share valuations, violating U.S. securities laws. The U.S. Court of Appeals for the Second Circuit revived the in 2021 after an initial dismissal, and Qihoo agreed to a $29.75 million in 2024 to resolve claims on behalf of affected shareholders. No major supplier or vendor-specific conflicts, such as payment disputes or contract breaches with hardware providers, have been prominently reported.

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