Business/Technology

Microsoft Cuts China-Based Engineers from U.S. Military Cloud Projects Amid National Security Concerns

News Mania Desk / Piyal Chatterjee / 19th July 2025

Microsoft has officially stopped using China-based engineers to provide technical support for U.S. military cloud computing systems, following heightened scrutiny and a recent directive from the Pentagon. This decision comes in the wake of an investigative report from ProPublica that raised serious questions about the involvement of foreign-based personnel in projects tied to national defense.

The report revealed that Microsoft had relied on engineering teams located in China to assist in maintaining and troubleshooting Pentagon cloud systems. These engineers were supposedly under the watch of U.S.-approved “digital escorts,” who had security clearance but often lacked the technical expertise to effectively supervise or intercept potential risks. This arrangement drew backlash from lawmakers and national security experts who raised alarms about the possibility of sensitive military information being exposed to foreign entities.

In response to the report, U.S. Secretary of Defense Pete Hegseth ordered a full review of all Defense Department cloud contracts, giving agencies two weeks to ensure that no technical support is being provided by engineers based in China. On social media platform X, Hegseth confirmed that all involvement of China-based teams with U.S. military cloud systems must end immediately, emphasizing the need to safeguard national security infrastructure from any potential foreign surveillance or influence.

Microsoft spokesperson Frank Shaw later confirmed that the company had revised its policy in direct response to the controversy and that China-based teams are no longer providing any technical assistance to U.S. government clients. He added that Microsoft is committed to maintaining the integrity and security of its systems for federal customers.

The incident has also prompted action in Congress, with Senator Tom Cotton requesting detailed information on all defense contractors employing Chinese personnel. He has expressed concern over the lack of oversight and is calling for greater transparency and restrictions on foreign access to sensitive technology used by the military.

This episode underscores growing tensions between the U.S. and China in the realm of technology and national security. It also highlights the challenges of managing global workforces in industries where cross-border collaboration can sometimes clash with security imperatives. With the Pentagon’s stance now clear, other tech companies may soon face similar scrutiny regarding their international staffing and support strategies.

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