China warns about AI risks with Anthropic’s Claude Code

China issued a warning on Wednesday regarding potential security risks associated with the use of Anthropic’s Claude Code artificial intelligence tool, which is based in the United States. This warning comes amidst the ongoing tech race between the U.S. and China, with Anthropic recently accusing Chinese company Alibaba of trying to extract its AI capabilities, which are not officially available in China. Alibaba has not responded to these accusations.

Despite the restrictions, many Chinese users have found ways to access U.S. AI tools. In fact, a Xiaomi AI developer revealed at a state-organized forum in March that many were using Claude Code. In response to the security concerns, Alibaba has instructed its employees to cease using Anthropic tools for work, effective July 10.

The Chinese Ministry of Industry and Information Technology raised alarm over the cybersecurity threat posed by Claude Code, stating that the AI coding tool contains a security backdoor vulnerability that could potentially compromise sensitive information. The tool is capable of transmitting information to a remote server without the user’s consent, including location and identity data.

To address these security risks, users are advised to uninstall or upgrade from affected versions of Claude Code (2.1.91 to 2.1.196) released between April 2 and June 29. The latest version available as of Wednesday is 2.1.204, according to Anthropic’s website. Anthropic has yet to respond to requests for comment on the matter.

In light of these developments, it is crucial for companies and individuals using AI tools to prioritize cybersecurity measures and stay informed about potential risks associated with the technology they employ. Stay updated on the latest developments in the tech industry by following trusted sources like CNBC for reliable business news.