China’s Government and State Firms Issue Urgent Warning: Avoid OpenClaw on Work Devices Amid Security Fears

Chinese government agencies and state-owned enterprises have issued urgent warnings to employees against installing the OpenClaw software on work devices, citing severe security vulnerabilities that have triggered a 10% market correction in related tech stocks. The directive, which in some cases extends to personal phones and computers, follows a security advisory from China's National Computer Network Emergency Response Technical Team highlighting critical threats like 'prompt injection' attacks that could compromise sensitive data.
Investor enthusiasm sends stocks surging
Tencent shares jumped 7.3% after the company unveiled compatible products, while startup MiniMax climbed more than 20% as investors bet on the trend. Tencent launched Workbuddy, which connects to popular Chinese office apps.
ByteDance introduced ArkClaw, a cloud-based version that needs no installation. Alibaba released CoPaw, which works with messaging platforms like DingTalk and Feishu. Zhipu AI launched AutoClaw, making setup as easy as downloading a regular app.
Local governments were quick to follow. Shenzhen’s Longgang district put forward a draft policy encouraging free deployment services and subsidies for developers.
Wuxi’s high-tech district in Jiangsu province announced grants of between 1 million yuan and 5 million yuan, roughly $144,774 to $723,871, for businesses that put the tool to use. All of this sat under Beijing’s “AI plus” plan, which aims to push artificial intelligence into industries across the country.
Users report data confusion, weak controls, and misread commands
The fast uptake has not been without problems. A research center under Shenzhen’s municipal health commission held a training session last week that drew thousands of attendees. Complaints from users also came in. The tool sometimes misread instructions, had weak access controls, and left people unsure about where their data ended up.
How far the restrictions will go is still unclear, including whether they will affect local subsidy programs tied to OpenClaw. Futian district in Shenzhen reportedly used the software to build an assistant for civil servants, according to state-owned Southern Daily.
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