OpenClaw, an open-source AI assistant, ignited frenzy in China with long lines forming in Shenzhen as people sought technical help to install it. Local governments offered subsidies and office incentives to companies using the tool, sending tech stocks surging amid a gold rush to integrate the new technology.

The enthusiasm quickly turned as Chinese regulators warned of serious security risks, including potential data leaks and financial errors. Tech giants like Alibaba and Tencent scrambled to launch copycat versions, while companies such as Minimax and Zhipu saw their Hong Kong-listed shares climb on investor optimism.

Unlike conventional chatbots, OpenClaw operates autonomously on users' devices across multiple applications and models. Its open-source nature has accelerated adoption in China's tech scene, which has increasingly embraced publicly shared AI systems since DeepSeek's breakthrough, forcing Beijing to balance innovation benefits against mounting security concerns.