Microsoft has announced it will no longer use China-based engineers for work on U.S. Defense Department cloud systems, following growing national security concerns and pressure from the Trump administration
The decision came just hours after Defense Secretary Pete Hegseth said the Pentagon would be “looking into” the company’s practices, following a ProPublica investigation alleging that Microsoft had allowed engineers in China to contribute to sensitive military cloud infrastructure with minimal oversight.
“These engineers should NEVER have access to or maintain DOD systems,” Hegseth said Friday, calling the situation “completely unacceptable.”
In response, Microsoft issued a statement confirming it would end all technical assistance from its China-based engineering teams for Department of Defense (DOD) cloud projects and related services.
“Microsoft has made changes to our support for U.S. government customers to assure that no China-based engineering teams are providing technical assistance for DOD government cloud and related services,” said Frank Shaw, Microsoft’s chief communications officer.
“We remain committed to working with our national security partners to evaluate and adjust our security protocols as needed.”
Controversy Over Microsoft’s “Digital Escort” Program
The ProPublica report, published Tuesday, revealed that since 2016, Microsoft used a system called “digital escorts” to oversee foreign tech workers—including those in China—on government cloud projects. The program was designed to ensure only authorized personnel could interact with federal systems. However, whistleblowers say many of the “escorts,” often hired for their security clearances rather than technical ability, were unqualified to detect security breaches or code vulnerabilities.
According to sources familiar with the process, Chinese engineers could easily bypass the safeguards, creating a potential risk of espionage or unauthorized data access. The report also cited concerns that individuals in China are subject to laws compelling cooperation with Chinese intelligence agencies.
Pentagon Classifications Raise Alarm
Although Microsoft stated the program was used only for unclassified systems, ProPublica noted that the data involved included “Impact Level 4 and 5” information—used to support military operations and protect life or sensitive financial data.
Microsoft initially defended the program, arguing that foreign personnel did not have direct access to U.S. data and that the company had complied with all federal security standards, including those outlined by the Defense Information Systems Agency (DISA) and the Federal Risk and Authorization Management Program.
“We use layered security controls, including approval workflows and automated code review, to detect and prevent threats,” a company spokesperson told Fox News.
Trump Administration Response
President Trump and his administration have voiced serious concerns about foreign involvement in U.S. defense systems. A White House spokesperson reiterated on Friday that “foreign engineers, regardless of country, should never touch critical national defense infrastructure.”
This marks the latest effort by the Trump administration to crack down on Chinese involvement in American tech and defense sectors, following recent actions against Chinese-owned app Temu and satellite surveillance installations in Cuba.
The Pentagon has not yet issued a formal review but reiterated Hegseth’s comments, saying the matter is under internal scrutiny.
