China moves to curb use of OpenClaw AI at banks, state agencies


Certain employees, including those at state-run banks and some government agencies, were banned from installing OpenClaw on office computers and also personal phones using the company’s network, some of the people said. — AP

Chinese authorities moved to restrict state-run enterprises and government agencies from running OpenClaw AI apps on office computers, acting swiftly to defuse potential security risks after companies and consumers across China began experimenting with the agentic AI phenomenon.

Government agencies and state-owned enterprises, including the largest banks, have received notices in recent days warning them against installing OpenClaw software on office devices for security reasons, according to people familiar with the matter, who asked to remain anonymous to discuss a private announcement. Several of them were instructed to notify superiors if they had already installed related apps for security checks and possible removal, some of the people said.

Certain employees, including those at state-run banks and some government agencies, were banned from installing OpenClaw on office computers and also personal phones using the company’s network, some of the people said. One person said the ban was also extended to the families of military personnel. 

Other notices stopped short of calling for an outright ban on OpenClaw software, saying only that prior approval is needed before use, the people said. 

The Ministry of Industry and Information Technology as well as the State-owned Assets Supervision and Administration Commission didn’t immediately reply to written questions. 

The warning underscores Beijing’s growing concern about OpenClaw, an agentic AI platform that requires unusually broad access to private data and can communicate externally, potentially exposing computers to external attack. President Xi Jinping has long seen data as a core pillar of his flagship "holistic approach to national security”: Beyond a highly censored internet regime known as the Great Firewall, Beijing has raised the alarm about foreign actors targeting datasets including geospatial and genetic information.

Despite the potential security risks, companies from Tencent Holdings Ltd to JD.com Inc have been rolling out OpenClaw apps to try and capitalise on the groundswell of enthusiasm, while several local government agencies have declared millions of yuan in subsidies for companies that develop atop the platform.

OpenClaw, previously called Clawdbot and Moltbot, has garnered a cult following since launching in November for its ability to operate autonomously, clearing users’ inboxes, making restaurant reservations and checking in for flights, among other tasks. Users can connect the tool to messaging apps such as WhatsApp and Slack, and direct the agent through those platforms.

But security concerns are growing. One user reported the agent "went rogue” and spammed hundreds of messages after gaining access to iMessage. Cybersecurity experts warn the tool is risky because it has access to private data, can communicate externally and is exposed to untrusted content. One researcher called that combination a "lethal trifecta.”

In Beijing’s case, there is the additional concern about a loss of control over a potentially ground-breaking technology. The ruling Communist Party previously waged a campaign to rein in the power and influence of internet firms including Alibaba Group Holding Ltd, which amassed so much data and become so deeply ingrained in daily life that they were regarded as posing a threat to the government.

Tech giants like Tencent and Alibaba, along with AI upstarts ranging from Moonshot to MiniMax, have rolled out their own tweaks of the software touting simple, one-click adoption. A slew of government agencies, in cities from Shenzhen to Wuxi, have issued notices offering multimillion-yuan subsidies to startups leveraging OpenClaw to make advances.

The frenzy has helped drive up shares of AI model developer MiniMax nearly 640% since its listing just two months ago. It’s now worth about US$49bil (RM192bil), surpassing Baidu Inc – once viewed as the frontrunner in Chinese AI development – in market value. The company launched MaxClaw, an agent built on OpenClaw, in late February.

Government warnings about OpenClaw have focused mostly on the technology. The People’s Daily, the Communist Party’s official mouthpiece, posted a lengthy interview Monday with an IT official who spoke extensively about the dangers that AI agents pose in sectors from finance to energy. The expert, who worked for an institution affiliated with the country’s Technology Ministry, urged caution in their use. – Bloomberg

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