TECH NEWS

Alibaba bans Claude Code after Anthropic is caught tracking Chinese users with hidden code

TL;DR

Alibaba banned Claude Code after security researchers found Anthropic had embedded steganographic tracking code to identify Chinese users. The ban follows Anthropic’s accusation that Alibaba ran the largest known distillation attack on its models.

Alibaba has banned its employees from using Claude Code, Anthropic’s AI-powered coding agent, after security researchers discovered that the tool contained hidden code designed to identify Chinese users. The ban, effective 10 July, follows weeks of escalating conflict between the two companies over allegations that Alibaba stole Anthropic’s AI capabilities through industrial-scale distillation.

“As Claude Code was recently discovered to carry back-door risks, after comprehensive evaluation, Claude Code has now been added to a list of high-risk software with security vulnerabilities,” Alibaba said in an internal notice reported by the South China Morning Post. The company recommended employees use Qoder, its own coding agent platform, as a substitute.

How the tracking worked

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