Microsoft will no longer allow Chinese staff to provide technical assistance on Defense Department cloud projects. The decision follows a ProPublica investigation revealing that the company had quietly relied on China‑based engineers supervised by U.S. "digital escorts" to keep sensitive Pentagon systems running.
Chief communications officer Frank Shaw wrote on X that Microsoft had "made changes … to assure that no China‑based engineering teams are providing technical assistance" to the Pentagon. Shaw added that the firm would keep adjusting its security protocols in cooperation with national‑security partners.
ProPublica's reporting described the escort model in detail. One escort told the outlet that U.S. citizens with security clearances monitored foreign engineers' work, but often lacked the technical depth to spot malicious code. Many monitors earned little more than minimum wage while overseeing colleagues with far stronger coding skills.
Senator Tom Cotton asked Defense Secretary Pete Hegseth for a list of contractors employing Chinese personnel and for training records covering the escort program, warning that Beijing's cyber capabilities rank among the United States' most dangerous threats. Hegseth responded by ordering a two‑week review of every cloud contract and declaring, "China will no longer have any involvement whatsoever in our cloud services, effective immediately".
Security specialists stressed that even without evidence of espionage, allowing foreign contractors to touch classified infrastructure creates an obvious attack surface. They urged the Pentagon to audit every system the overseas teams accessed, noting that one overlooked back door can undermine an otherwise hardened network.
The Pentagon's review is expected to conclude in early August. Its findings will determine whether further restrictions—or broader contractor reforms—are needed to protect military workloads in the cloud.
Source(s)
Reuters (in English) & ProPublica (in English)