China on Wednesday warned of “back-door” security risks affecting companies that use U.S.-based company Anthropic’s Claude Code artificial intelligence tool.

It comes as the U.S.-China tech race intensifies, with Anthropic last month blaming Chinese company Alibaba for attempting to extract its AI capabilities, which are not officially available in China. Alibaba did not comment on the accusations at the time.

Many locals in China have found ways to use U.S. AI tools, however. In March, a Xiaomi AI developer said at a state-organized forum that many were using Claude Code. And Alibaba has ordered its employees to stop using Anthropic tools for work starting July 10, CNBC confirmed on Monday.

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