Why did Alibaba ban Claude Code for employees from July 10?

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Alibaba Banned Claude Code Due to Security Concerns Raised by Chinese Regulator

Alibaba informed its employees last week that the use of Claude Code would be prohibited from July 10, citing security concerns. This decision followed a warning from China's National Vulnerability Database (NVDB) about a potential "security backdoor" in versions of Anthropic's code-generating AI. The NVDB identified these risks as posing a severe threat to users.
Chinese Regulator Warned of Security Backdoor Risks

China's National Vulnerability Database, an entity affiliated with the Ministry of Industry and Information Technology, issued a statement on Wednesday highlighting "security backdoor risks" detected in Claude Code. The database advised institutions and users to conduct immediate checks, uninstall or upgrade to secure versions, and enhance network traffic monitoring to prevent sensitive data leakage.
Anthropic Described Mechanism as Anti-Abuse Measure

Anthropic stated that the mechanism in question was designed to detect fraud and abuse. According to the AI company, it checks a device's timezone and whether a request is routed through a domain linked to unsupported regions or known problematic entities. This is described as a standard method for identifying and preventing fraudulent activities.
Experiment Aimed to Prevent Unauthorized Resellers and Distillation

An Anthropic engineer, Thariq Shihipar, clarified that the mechanism was part of an experiment launched in March. The primary goals of this experiment were to prevent account abuse originating from unauthorized resellers and to protect against the process of "distillation," where AI models are reverse-engineered to replicate their capabilities. Shihipar indicated that stronger mitigations have since been implemented.

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Why did Alibaba ban Claude Code for employees from July 10?

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