US Auditing Chinese Role in Cloud Services, Says Defence Chief

The United States has initiated a comprehensive review of Chinese nationals’ involvement in managing sensitive cloud services linked to the US military, a move underscored by heightened concerns over national security. Defense Secretary Pete Hegseth revealed that he had ordered an audit into Microsoft’s employment practices after reports emerged that Chinese contractors were assisting in maintaining the Department of Defense’s (DoD) cloud infrastructure.

In his announcement, Hegseth emphasized that the use of Chinese citizens in servicing critical defense-related cloud systems had ended, calling the practice unacceptable given the potential for security risks. According to Hegseth, the Defense Department has already issued a formal letter of concern to Microsoft, documenting what he termed a “breach of trust.” As part of corrective action, the Pentagon has mandated a third-party audit of Microsoft’s “digital escort” program, which manages sensitive cloud systems. The audit will examine not only the program itself but also the code contributions and submissions made by Chinese nationals.

Expressing his concern about potential risks, Hegseth questioned whether Chinese technicians might have inserted hidden vulnerabilities or code modifications unknown to US authorities. “Did they put anything in the code that we didn’t know about? We are going to find out,” he declared, underscoring the seriousness of the probe.

Beyond Microsoft, Hegseth directed all software providers associated with the Defense Department to identify and terminate any existing Chinese involvement in DoD systems. This broader order reflects the Pentagon’s intent to secure its technological backbone and prevent any foreign access that could compromise sensitive military operations.

The decision follows a July investigative report by ProPublica, which revealed that Microsoft had been employing contractors based in China and other foreign countries to help manage the Defense Department’s cloud networks. These contractors reportedly worked alongside US-based “digital escorts,” raising questions about the potential exposure of sensitive military data. The report sparked significant controversy, given the already tense relations between Washington and Beijing over issues ranging from cyber espionage to technological dominance.

In response to the public scrutiny, Microsoft announced that it would no longer rely on technicians based in China to support US military systems. The company pledged to shift this responsibility entirely to staff based in the United States or other trusted locations, aligning with Pentagon security expectations.

Hegseth stated that his immediate review and subsequent directives were aimed at safeguarding US national security, not merely addressing a one-off concern. He characterized the exclusion of Chinese nationals from sensitive defense systems as “common sense,” highlighting that contractors serving the Pentagon must prioritize the security interests of the United States over commercial gain. “We expect vendors doing business with the Department of Defense to protect US national security ahead of profit maximization,” he stressed.

This development reflects the US government’s growing vigilance regarding foreign influence in critical technology sectors. Cloud computing, which underpins a wide range of military communications, logistics, and operational planning, is viewed as a particularly sensitive area vulnerable to cyber intrusion and espionage. By tightening oversight and ending Chinese involvement in defense cloud services, the Pentagon seeks to ensure the resilience and integrity of its digital infrastructure.

In summary, the US government, under Secretary Hegseth’s direction, has moved decisively to eliminate potential security risks by auditing Microsoft and ordering all defense contractors to remove Chinese participation from sensitive cloud environments. The decision, driven by investigative reporting and subsequent revelations, marks a strong stance on safeguarding military technology against foreign influence.