US is reviewing China’s role in cloud services, according to the defense secretary.

The United States government, under the direction of Secretary of Defense Pete Hegseth, has initiated a review concerning the involvement of Chinese nationals in the management of sensitive cloud services utilized by the military. This decision underscores the administration’s commitment to safeguarding national security, particularly in light of recent revelations regarding Microsoft’s practices.
Hegseth announced the audit during a video statement on Wednesday, explicitly questioning Microsoft’s employment of Chinese citizens for managing critical cloud infrastructure. He stated that the collaboration with Chinese nationals concerning the Department of Defense cloud environments would be terminated. “The use of Chinese nationals to service Department of Defense cloud environments – it’s over,” he emphasized, underscoring the urgency of the situation.
In light of these concerns, the Department of Defense has issued a formal letter of concern to Microsoft, documenting what has been described as a breach of trust. The review will require an extensive third-party audit of Microsoft’s digital escort program, scrutinizing both the code and submissions made by contractors in China. Hegseth expressed the need to ascertain whether any compromises had been made to the integrity of sensitive information by these contractors. “Did they put anything in the code that we didn’t know about? We are going to find out,” he articulated.
The decision follows an investigative report by ProPublica in July, which detailed Microsoft’s employment of contractors from China alongside local “digital escorts” to maintain the military’s cloud systems. In response to the scrutiny, Microsoft has declared its intention to discontinue using technicians based in China for military support services.
Hegseth’s directive extends beyond Microsoft, calling upon all software providers that partner with the Department of Defense to identify and eliminate any form of Chinese involvement in critical systems. He remarked that ensuring the security of the United States should take precedence over profit maximization. “We expect vendors doing business with the Department of Defense to protect US national security ahead of profit maximization,” he stated.
This review reflects a broader commitment to integrity and national defense, reinforcing the administration’s dedication to addressing potential vulnerabilities posed by foreign involvement in critical military infrastructure.
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