Starting July 10, 2026, Alibaba will ban its employees from using Claude Code, a programming tool made by Anthropic. This move follows a deep internal security review that flagged Claude Code as high-risk software.
Alibaba says the tool may contain a hidden “backdoor.” This could let outsiders access company systems without permission. Because of this, Alibaba added Claude Code to its restricted software list. Employees are now advised to use Alibaba’s own code generator, called Qoder.
The concern grew after a Reddit user claimed to have reverse-engineered Claude Code. They said the software had spyware-like features. According to the post, since version 2.1.91 released on April 2, 2026, Claude Code secretly checks proxy settings and time zones. Then, it compares this data to hidden lists of Chinese corporate networks and AI labs, including Alibaba, Baidu, ByteDance, and Moonshot AI.
The Reddit post explained, “Claude Code checks whether you have a proxy enabled — and if so, covertly transmits, through invisible alterations to the system prompt, whether you are in China, whether you are proxying to a Chinese URL, and whether you are affiliated with a Chinese AI lab.”
Anthropic Responds to Security Claims
Anthropic acknowledged the mechanism. A member of the Claude Code team said, “The mechanism was intended to combat account sales and model distillation, and promised it would be removed in the next release.”
Account sales and model distillation refer to unauthorized reuse or copying of AI models. Anthropic designed the check to stop these practices but agreed to remove it after the backlash.
Escalating Rivalry Between Alibaba and Anthropic
In June 2026, Anthropic accused Alibaba’s Qwen Lab of creating nearly 25,000 fake accounts. These accounts scraped Claude’s outputs nearly 28.8 million times. This allegation added fuel to the ongoing tensions between the two companies.
Alibaba’s decision to block Claude Code is seen as a response to Anthropic’s accusations. This back-and-forth highlights the growing rivalry in the AI field between Chinese tech giants and foreign AI developers.
Alibaba’s move also reflects rising concerns about AI security and data privacy. Companies are increasingly cautious about the risks AI tools might pose to sensitive systems. The suspicion over Claude Code’s hidden checks and potential backdoors fits into this wider pattern.
For now, Alibaba pushes its employees to use Qoder, reinforcing its control over coding tools and keeping tight security. The situation shows how AI tools can become points of conflict when trust breaks down.
Based on
- Alibaba reportedly bans employees from using Claude Code — techcrunch.com
- Alibaba bans Claude Code over security concerns | Cybernews — cybernews.com
- China hits back at the US as Alibaba blocks Anthropic’s Claude code due to…, here’s what exactly happened — news24online.com
- Alibaba Bans Claude :One of China’s biggest ecommerce company to employees: Starting July 10, you cannot use America’s .. | – The Times of India — timesofindia.indiatimes.com
- Alibaba Plans Ban on Claude Code Citing Alleged Backdoor Risks — theagenttimes.com
