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Pentagon Issues Formal Concern over Microsoft's Chinese Staff

Secretary Hegseth ordered a third-party audit of Microsoft's Digital Escorts program after ending Chinese nationals' access to Department of Defense cloud systems due to security risks.

  • On August 28, 2025, Defense Secretary Pete Hegseth announced an audit into Microsoft's use of China-based engineers on Department of Defense cloud systems.
  • The audit follows a July ProPublica report revealing that China-based contractors maintained sensitive cloud services with limited US supervision, creating security risks.
  • Hegseth stated the Digital Escorts program, initiated under former President Obama, allowed Chinese coders to operate remotely under US contractors but exposed the DoD to unacceptable risk.
  • He issued a formal letter to Microsoft citing a breach of trust and demanded a third-party audit of the program’s code and submissions by Chinese nationals, calling the practice over and “common sense.”
  • Hegseth ordered a two-week review to remove all China-based engineers from DoD contracts and required all software vendors to end any Chinese involvement to protect national security.
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ProPublica broke the news in New York, United States on Tuesday, July 15, 2025.
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