- Alibaba has instructed its employees not to use Anthropic's AI coding assistant Claude Code for work due to concerns over features that could identify users linked to China, according to Reuters.
- The company has classified Claude Code as high-risk software and will prohibit all employees from using it starting July 10.
- Instead of Claude Code, Alibaba employees have been instructed to use the company's own AI coding tool, Qoder.
- Anthropic has already banned Chinese companies and foreign entities owned by those companies from using any of its AI models and tools.
- Concerns arose after reports indicated that Claude Code included mechanisms capable of examining parts of a user's environment, such as timezone and proxy-related information.
- Anthropic had introduced a feature in March to curb abuse by unauthorized resellers, which was later described as an experiment that included tracking users' locations.
- Despite restrictions, Claude Code has remained widely used by programmers in China, although companies face greater legal and compliance concerns.
- The US-China AI rivalry has intensified, with Chinese companies launching competitive AI models, such as GLM-5.2, which are gaining attention for their capabilities.
Alibaba's ban on Claude Code reflects escalating tensions in the US-China AI landscape. The company cited concerns over features in Claude Code that could identify users linked to China, leading to a shift towards its own platform, Qoder.1234689
Reports indicate that Claude Code had mechanisms to examine user environments, raising alarms about privacy and compliance. An Anthropic employee noted that these features were initially introduced to prevent unauthorized access and protect the company's models.57
Despite restrictions, Claude Code remains popular among Chinese developers, who often bypass limitations by routing traffic through external servers. However, companies face stricter legal challenges.
As US AI firms tighten access controls, Chinese companies are increasingly adopting domestic models like Alibaba's Qwen and others. The AI arms race is intensifying, with new models like GLM-5.2 from Z.ai emerging as competitive alternatives to Western offerings, showcasing advanced capabilities at lower costs.1011
“This was an experiment we launched in March that was meant to prevent account abuse from unauthorized resellers,” said Anthropic’s Thariq Shihipar, addressing the controversial features of Claude Code. The rivalry between the two nations continues to shape the future of AI development and deployment.
“Alibaba classified Claude Code as high-risk software and instructed employees to use its in-house tool Qoder instead. Anthropic says an experiment in March to track users' location was meant to prevent abuse and has since been taken down.”
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