Anthropic’s AI model Claude Code is at the center of a dispute between the US and China, with the company trying to block Chinese firms from accessing it due to security concerns. Chinese companies are finding ways to bypass these restrictions, while Alibaba has banned its employees from using Claude Code over concerns about hidden code that could flag Chinese users. The situation highlights the complexities of AI development and use in a globalized world. Why it matters: this incident reveals the escalating tensions between the US and China in the AI sector, with significant implications for the future of global AI collaboration and competition.