Alibaba Bans Claude Code and Directs Employees to Its Own Tool

A Surprising Decision or an Expected Move?

Amid intensifying competition in the AI tools market, Chinese tech giant Alibaba has announced its intention to ban the use of Claude Code, the programming tool developed by American company Anthropic, effective July 10, 2025. The decision reflects growing tensions between Chinese and American tech companies in the field of AI models, against a backdrop of tightening regulatory restrictions on both sides.

Why Is Alibaba Banning the Tool?

Alibaba has classified Claude Code as high-risk software and issued internal directives requiring employees to cease using it and transition to its internally developed alternative, Qoder. This decision does not come out of nowhere — Anthropic already prohibits Chinese companies and affiliated entities from using its models, placing any such usage in a legal and contractual gray area.

Access Loopholes and Efforts to Close Them

Despite existing restrictions, a number of Chinese users have managed to access Claude through various loopholes. In its efforts to curb this, reports shared by users on Reddit revealed an experiment conducted by Anthropic in March 2025, involving a version of Claude Code capable of covertly identifying Chinese users.

Thariq Shihipar from the Anthropic team explained in a post on X that the experiment was aimed at:

• Preventing account abuse by unauthorized resellers.
• Protecting against distillation — the practice of training AI models on the outputs of other models without permission.

Shihipar added that the team has since developed more effective protective mechanisms, noting that they had intended to discontinue the experiment earlier.

Qoder: China's Bet on Self-Sufficiency

Alibaba's directive to steer employees toward Qoder fits into a broader strategy adopted by major Chinese companies — one centered on developing homegrown AI tools as alternatives to their American counterparts. This strategy is not limited to Alibaba alone; it spans a range of leading Chinese tech firms that are pouring significant investment into building a comprehensive ecosystem of local models and tools.

The Bigger Picture: Technological Rivalry Between Two Powers

This incident reveals a dimension that goes far beyond a single programming tool — it reflects the growing divide in the global AI ecosystem between two competing camps. On one side, American companies seek to secure their models and protect their intellectual property; on the other, Chinese companies are building domestic alternatives capable of meeting their needs without relying on foreign providers.

Ultimately, the gap between the two technological ecosystems appears to be widening, which will inevitably lead to a redrawing of the competitive landscape in the AI sector in the years ahead.

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