OpenClaw’s China moment goes from gold rush to security panic

Chinese government bodies and state-owned companies have told employees to stay away from OpenClaw after officials raised concerns it could put sensitive data at risk.

Two people familiar with the matter said the warnings went out in recent days, telling staff not to install the software on work devices. One source said employees at state-owned enterprises were told by regulators to avoid it altogether, in some cases even on personal phones and computers.

The second source, from a Chinese government agency, told Reuters no outright ban had been issued at their workplace, but staff were warned about safety risks and told not to install it.

The National Computer Network Emergency Response Technical Team/Coordination Center of China (CNCERT/CC) also issued a security advisory noting that improper installation and use of OpenClaw agents have already led to several serious security concerns.

Among the key threats highlighted is “prompt injection,” where attackers embed hidden malicious instructions in web pages that, if read by OpenClaw, could trick the system into leaking sensitive information such as system keys. CNCERT/CC also warned of “misoperation” risks, where OpenClaw may misunderstand user commands and mistakenly delete critical data, including emails or core production information.

The software was built by Peter Steinberger, an Austrian developer, who put it on GitHub last November. He was hired by OpenAI last month. In China, it caught on quickly. The phrase “raising a lobster,” a reference to the app’s lobster logo, spread across Chinese social media, and the tool was soon taken up by major tech companies and some local governments.

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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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