China’s tech giant Alibaba has reportedly banned its employees from using Anthropic’s programming tool Claude Code, starting July 10. This move comes amid heightened scrutiny of AI tools by Chinese authorities and companies.

Anthropic had already restricted access to its models for Chinese firms and their foreign subsidiaries. The company reported efforts to seal any loopholes that allowed Chinese users to sidestep these restrictions, including a version designed to secretly identify such users. While Anthropic’s Thariq Shihipar described this as an experiment meant to curb abuse, Alibaba seems intent on ensuring compliance.

According to reports, Alibaba has classified Claude Code as high-risk software and is instructing its employees to use the company's own Qoder tool instead. This could be part of a broader strategy to maintain control over AI development within its ecosystem, especially given growing concerns about data security and national tech standards.

The move highlights how global tech companies are grappling with the implications of AI tools in different regulatory landscapes. While Anthropic is working to address these challenges by tightening access controls, such bans could also signal a shift towards more restrictive policies around AI usage.