Claude Restrictions Impact China AI

Anthropic has implemented new restrictions blocking companies with over 50% Chinese ownership from accessing its Claude AI models, regardless of their location. This decision, driven by legal, regulatory, and security concerns, aims to prevent misuse of AI technology by authoritarian regimes. The policy affects all Claude models and developer tools, impacting major tech firms like ByteDance, Tencent, and Alibaba, along with their subsidiaries.

The move has created uncertainty for overseas AI tools backed by Chinese companies that rely on Claude. For example, users of Trae, ByteDance's AI-powered code editor, have expressed concerns about losing access. Chinese AI companies are capitalising on the situation, offering migration tools and incentives to attract disgruntled users. Zhipu has released a Claude-to-GLM-4.5 migration toolkit, while Alibaba is promoting its Qwen-plus model.

Anthropic's decision marks a shift towards ownership-based restrictions in tech governance, impacting international products and forcing companies to reconsider their AI strategies. While the restrictions are expected to impact Anthropic's revenue, the company maintains that the policy is necessary to protect against potential misuse of its AI technology.