Local Governments Promote OpenClaw AI Despite Central Warnings

As cybersecurity agencies warned of risks in the popular open-source AI agent OpenClaw (see prior coverage), China's local governments are pushing ahead with subsidies and development plans, exemplified by Wuxi's comprehensive support program. Central authorities, including the People's Bank of China, urge caution, underscoring tensions between local enthusiasm and national security priorities.

The open-source AI agent OpenClaw continues to drive excitement across China, with major internet firms providing accessible versions. Local governments are actively promoting adoption through subsidies and tailored software development. A standout initiative comes from a district in Wuxi, Jiangsu province, which launched a 12-point plan including foundational support, talent recruitment, and security compliance measures, with grants up to 5 million yuan (US$728,000) per individual.

This local fervor follows swift central interventions, as previously reported, with the Ministry of Industry and Information Technology (MIIT) and National Computer Network Emergency Response Technical Team/Coordination Centre of China (CNCERT) flagging security vulnerabilities. The People's Bank of China (PBOC) has specifically addressed AI in finance, advocating a “proactive yet prudent, safe and orderly” deployment. Its 2026 agenda prioritizes risk mitigation, enhanced supervision, and high-quality development, while promoting banking-tech integration.

PBOC's stance echoes its ongoing policy of tech empowerment with safeguards, discussed in a recent meeting with department heads and deputy governor Zou Lan.

Experts like Alfred Wu from the Lee Kuan Yew School of Public Policy observe that local authorities' rush contrasts with central restraint, revealing persistent priority divergences between levels of government.

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Dramatic illustration of a computer screen showing OpenClaw AI security warning from Chinese cybersecurity agency, with hacker threats and vulnerability symbols.
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Chinese cybersecurity agency warns of OpenClaw AI risks

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China's national cybersecurity authority has warned of security risks in the OpenClaw AI agent software, which could allow attackers to gain full control of users' computer systems. The software has seen rapid growth in downloads and usage, with major domestic cloud platforms offering one-click deployment services, but its default security configuration is weak.

Following initial alerts from cybersecurity agencies, the Chinese government has warned offices of ongoing security risks from OpenClaw AI, as its use proliferates in government agencies and workplaces despite crackdowns.

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This month in China, people have queued on streets to install the AI agent OpenClaw on their computers. Some travelled from other cities, others waited hours for engineers to set it up, and 'birth certificates' were issued upon installation. The frenzy highlights enthusiasm for AI agents.

China's Supreme People's Court states that its courts "properly adjudicated cases involving artificial intelligence" and "accurately grasped the 'margin for error' in technological innovation". In a report presented to the National People's Congress, the court emphasized applying "resolute legal regulation" to acts exploiting AI that infringe on rights or disrupt social order, while promoting orderly development of the digital economy. The Supreme People's Procuratorate reported that China prosecuted 4,739 individuals last year in cases related to data security breaches in fields such as artificial intelligence and e-commerce.

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At the inaugural Hong Kong Global AI Governance Conference at the University of Hong Kong, Alibaba policy lead Fu Hongyu said China is at the front lines of global AI guardrails. He described a ‘common ignorance’ dilemma, unsure of AI’s direction.

Microsoft is developing an always-on version of its AI assistant Copilot that can perform tasks autonomously, drawing inspiration from the OpenClaw platform. The company confirmed early experiments with OpenClaw to enable AI to take actions on users' behalf. Safety measures are a key focus amid concerns over the open-source tool's lack of safeguards.

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China's National People's Congress held a press conference on Wednesday, where spokesperson Lou Qinjian highlighted major advances in the domestically developed humanoid robot industry. He stated that 2025 marks a pivotal moment with breakthroughs in technological innovation and real-world applications. The event also explored how 'AI+' could open new frontiers for consumption.

 

 

 

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