Chinese authorities have reportedly warned government agencies and major state-run banks against installing applications that run on the OpenClaw AI agent. The move reflects rising concerns about security risks linked to the open-source autonomous AI tool, which has recently gained strong popularity among users in the country.
According to a report by an international publication, several government departments and financial institutions received notices instructing them not to install OpenClaw-based apps on office computers. Officials were also told to report to their superiors if the software had already been installed and to begin security checks and possible removal from devices.
Employees at some state-run banks and government offices have also been restricted from installing OpenClaw on personal phones connected to company networks. In some cases, the restrictions reportedly extend to relatives of Chinese military personnel. While some notices stopped short of a full ban, they stated that prior approval would be required before using the AI agent.
Following the development, shares of companies offering tools built on OpenClaw lost earlier gains. Tencent’s stock, which had been rising, gave up most of its gains, while MiniMax shares declined further, ending more than 1 percent lower.
Authorities appear concerned because OpenClaw requires broad access to private data and can communicate externally, which could expose systems to cyber threats. Despite these risks, companies such as Tencent and JD.com Inc. have been expanding OpenClaw applications to take advantage of the growing interest in agentic AI. Some local governments have even announced subsidies worth millions for companies building products on the platform.
Public interest in the AI agent has also been growing. Earlier this week, many people, including 60-year-olds, were seen lining up at installation drives in Shanghai organised by companies such as Tencent. Pop-up stalls helped users install the software on personal computers.
Since its launch in November 2025, OpenClaw has been viewed as a major development in AI because it operates autonomously and runs locally. However, cybersecurity experts have warned that the technology may pose risks such as prompt injection, malicious plugins, data leaks, and supply-chain attacks.
The development also reflects broader concerns in China about losing control over powerful technologies. Authorities have been tightening oversight of major technology firms that hold vast amounts of user data and play a major role in daily life. Regulators have also been cautious about AI agents because of potential risks to critical sectors such as finance and energy.
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