China Flags Claude Code as Security Threat, Anthropic Pushes Back

Leave a Comment / Cybersecurity, Data Protection, Enterprise Technology, Industry News / By cxojunction

A new flashpoint has emerged in the escalating US-China AI rivalry after Chinese authorities raised security concerns over Anthropic’s Claude Code, prompting the US AI company to defend its product and reaffirm that users in China were never authorized to access it under its existing usage policy.

The response follows a July 8 warning issued through a cybersecurity platform managed by China’s Ministry of Industry and Information Technology (MIIT), which described Claude Code as posing a “serious threat” to Chinese users. According to a notice published on the WeChat account of China’s National Vulnerability Database, the affected versions allegedly contained a built-in monitoring mechanism capable of transmitting sensitive user information to remote servers without user consent. Anthropic acknowledged embedding hidden code to detect users’ locations, stating that the feature was intended to prevent the illicit distillation of its AI models.

Chinese authorities said the warning applies to Claude Code versions 2.1.91 through 2.1.196, released between April and late June, and advised developers to immediately uninstall or upgrade to newer versions that no longer contain the tracking code. The advisory also urged organizations to strengthen external access controls to prevent unauthorized transmission of sensitive information. While Anthropic has since released updated versions, the company reiterated that its policy has always prohibited access by users based in China.

Although Claude Code is not officially available in mainland China or Hong Kong, it has gained widespread popularity among Chinese developers. Anthropic has also accused several Chinese technology companies, including DeepSeek, MiniMax, and Alibaba Group, of using model distillation techniques to train competing AI systems. Meanwhile, Alibaba reportedly introduced a company-wide ban on Claude Code, citing concerns over the alleged security backdoor, further highlighting the growing distrust surrounding cross-border AI technologies.

The dispute underscores how AI security has become deeply intertwined with cybersecurity, geopolitics, and national security. As governments and enterprises place greater scrutiny on AI platforms, organizations will need to evaluate not only an AI tool’s capabilities but also its transparency, data-handling practices, and supply chain risks. The development serves as a reminder that trust, compliance, and security are becoming as critical as innovation in the global adoption of artificial intelligence.

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Source: Anthropic hits back after China warns of Claude Code ‘backdoor’ risks | TheStar | https://www.thestar.com.my/tech/tech-news/2026/07/10/anthropic-hits-back-after-china-warns-of-claude-code-backdoor-risks#goog_rewarded