Highlights;
- US Secretary of Defense Pete Hegseth has ordered a review after it was revealed that Microsoft used Chinese contractors to manage sensitive cloud services for the US military.
- Hegseth announced an audit to investigate potential security breaches and check for any unauthorized code inserted by Chinese nationals.
- A formal letter of concern was issued to Microsoft, and a third-party audit of their digital escort program has been mandated.
- Hegseth instructed all software providers to terminate any Chinese involvement in Department of Defense (DOD) systems.
- The action follows a July 2025 ProPublica report exposing Microsoft’s use of Chinese contractors for DOD cloud systems.
- Microsoft has since stated it will no longer use China-based technicians for military support.
- Hegseth emphasized that prioritizing national security over profits is crucial for DOD contractors, calling the exclusion of Chinese nationals from sensitive systems “common sense.”
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Pete Hegseth has initiated a review after reports emerged that Microsoft relied on Chinese contractors to oversee sensitive cloud services.
Published On 28 Aug 2025
The U.S. has begun an examination of the role of Chinese nationals in managing sensitive cloud services for the U.S. military, according to the defense secretary.
On Wednesday, U.S. Defense Secretary Pete Hegseth announced that he had ordered an audit of Microsoft’s use of Chinese citizens to manage sensitive cloud services, aiming to assess whether any security breaches may have occurred.
“The involvement of Chinese nationals in servicing Department of Defense cloud environments is now over,” Hegseth declared in a video statement.
“We’ve sent Microsoft a formal letter of concern regarding this breach of trust and are requiring a third-party audit of their digital escort programme, including the code and submissions made by Chinese nationals.”
“We need to determine if anything was embedded in the code without our knowledge,” Hegseth added.
Hegseth also directed software providers to identify and terminate “any Chinese involvement in DOD systems.”
This action follows a ProPublica investigation in July that revealed Microsoft had employed contractors in China and other foreign countries to maintain Defense Department cloud systems, working alongside U.S.-based “digital escorts.”
After the report, Microsoft announced it would no longer use China-based technicians to support the military.
Hegseth, who initiated the review of Chinese involvement in cloud services immediately after the ProPublica report, called the exclusion of Chinese nationals from sensitive systems “common sense.”
“We expect our vendors to prioritize U.S. national security over profits when doing business with the Department of Defense,” he stated.
