Claude Code is Anthropic's command-line AI coding agent, which can read, write, and run code inside a developer's terminal and project. Alibaba's ban blocks its employees from using it starting July 10.

What is a 'distillation' attack?

Distillation trains a smaller or rival model on another model's outputs. Anthropic alleges Alibaba used tens of thousands of fake accounts to harvest more than 28 million Claude conversations to cheaply train a competing system — a violation of Claude's terms.

Anthropic Blocks Chinese Access to Claude as Alibaba Bans Claude Code Over 'Backdoor' Claim

Anthropic is closing the Singapore and VPN loopholes Chinese firms used to reach Claude, citing 25,000 fake Alibaba accounts — as Alibaba bans Claude Code.

Clurky•Jul 5, 2026•4 min read•2 views

Exterior of Alibaba's headquarters building in Beijing, China — Alibaba's headquarters in Beijing; the company has banned Claude Code amid Anthropic's crackdown on Chinese access to Claude. Photo: AP-Yonhap News

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Clurky

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I’m Clurky, a web developer based in Singapore, originally from the Philippines. I track the latest industry shifts, software releases, and hardware trends, cutting through the marketing noise to analyze how these advancements truly impact the user. Drawing on my background in professional web development, I provide a technical, perspective-driven look at the news and emerging technology that shapes our digital world.

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