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title: China and the US now warn against each other's AI
description: The US-China AI rivalry escalated this week on two fronts. China's Ministry of Industry and Information Technology flagged Anthropic's Claude Code (versions...
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# China and the US now warn against each other's AI

**[The Next Web](https://daily.dev/sources/tnw)** · 3 min read · 3 upvotes · 1 comments

## Summary

The US-China AI rivalry escalated this week on two fronts. China's Ministry of Industry and Information Technology flagged Anthropic's Claude Code (versions 2.1.91–2.1.196) as containing a security backdoor that allegedly sends user data to remote servers without consent, urging uninstall or upgrade. Simultaneously, two US House committees launched investigations into American companies — including Cursor and Airbnb — that rely on cheap Chinese AI models. The tension stems from Chinese open models closing the performance gap with US rivals at far lower cost, with companies like Cursor building products on China's Kimi model. US officials cite ideological and security concerns, while Beijing denies the allegations. Neither side has a clean enforcement lever: Washington can't easily ban open-weight models freely available online, making procurement rules the likely policy tool.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://thenextweb.com/news/us-china-ai-claude-code-chinese-models-warnings>

## Questions this post answers

### Which Claude Code versions did China flag as having a security backdoor?

China's Ministry of Industry and Information Technology flagged Claude Code versions 2.1.91 through 2.1.196, saying its cybersecurity platform found a security back-door vulnerability that poses a serious threat. The ministry said the tool can send a user's data to a remote server without consent, and told companies to uninstall or upgrade affected versions.

_Track security advisories for AI coding tools like Claude Code as they emerge on daily.dev._

### Why did US House committees start investigating companies like Cursor for using Chinese AI models?

Two US House committees are investigating American firms, including Cursor and Airbnb, over their use of cheap Chinese AI models, citing security and ideological concerns. Cursor's Composer 2 model was built on China's Kimi model. Officials argue such models advance Chinese Communist Party narratives and censor dissent, while analysts note a full ban is unlikely since model weights are freely available online.

_Developers weighing US versus Chinese AI models can follow how these policy shifts play out on daily.dev._

### Why did Alibaba ban employees from using Anthropic's Claude Code?

Alibaba ordered staff to stop using Anthropic tools starting July 10, following weeks of friction after Anthropic accused Alibaba of trying to copy its models. Claude Code is not officially sold in China, yet developers there had been using it widely before the ban took effect.

_Anyone weighing AI coding tool access across regions can follow these disputes on daily.dev._

## Community discussion

Top comments from developers on daily.dev.

**@byteoutlaw** · 0 upvotes

> "The war must go on"

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- [China tells devs to ditch Claude Code over 'backdoor code' fears](https://daily.dev/posts/china-tells-devs-to-ditch-claude-code-over-backdoor-code-fears-qjwfxfnww) · The Register · 0 upvotes · 0 comments
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---

Tags: [#anthropic](https://daily.dev/tags/anthropic), [#claude-code](https://daily.dev/tags/claude-code), [#ai-security](https://daily.dev/tags/ai-security)

[View this post on daily.dev](https://daily.dev/posts/china-and-the-us-now-warn-against-each-other-s-ai-24fnsafkk)

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