
Claude Code's complicated China problem involves bans on both sides of the Pacific
Quick Answer
Anthropic is attempting to prevent Chinese firms like ByteDance and Ant Financial from using Claude Code, but these companies are circumventing restrictions via VPNs.
Quick Take
In response, Alibaba has prohibited its employees from using the tool after discovering code that could identify Chinese users.
Key Points
- Anthropic blocks access to Claude Code for Chinese companies.
- Chinese firms are using VPNs and subsidiaries to bypass restrictions.
- Alibaba has banned its employees from using Claude Code.
- Hidden code in Claude Code could identify Chinese users.
📖 Reader Mode
~1 min readAnthropic is trying to stop Chinese companies from accessing Claude Code, the Financial Times reports. The company's terms of service explicitly ban sales to companies controlled by China. But companies like Ant Financial and ByteDance are getting around the restrictions through cloud services, overseas subsidiaries in Singapore, or VPNs.
Meanwhile, Alibaba is banning its own employees from using Claude Code and requiring them to delete all Claude models, The Information reports. The ban follows reports of hidden code in Claude Code that could flag users based in China or linked to a Chinese lab. Anthropic's Thariq Shihipar called it an experiment from March to stop account abuse and distillation, adding that stronger safeguards have since replaced it.
Anthropic has previously accused Alibaba, DeepSeek, Moonshot AI, and MiniMax of using Claude for distillation, training their own smaller models on Claude's outputs.
— Originally published at the-decoder.com
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