Written by Ashton Snyder on
 August 29, 2025

Pentagon restricts Chinese work on cloud systems

The Pentagon has announced a significant policy change: Chinese nationals will no longer be allowed to work on the Department of Defense's cloud infrastructure. This decision follows security concerns highlighted by Defense Secretary Pete Hegseth.

According to The Hill, the audit by Microsoft and a separate investigation by the Department of Defense aim to identify vulnerabilities stemming from the involvement of Chinese developers in cloud projects.

Previously, the presence of Chinese developers within the DoD's cloud systems occurred under an arrangement known as the "digital escort" program. This initiative, operated by Microsoft, involved Chinese developers working under remote US contractor supervision. Hegseth remarked on the surprising risks this posed to national security.

Microsoft Taking Steps to Review Security

Upon this realization, Microsoft has agreed to conduct an internal audit, at no expense to taxpayers, to uncover any security vulnerabilities. As a part of the immediate response, the tech giant has also decided to cease the employment of China-based engineering teams on projects related to the DoD's cloud systems. Hegseth emphasized the requirement for all software providers to clear their systems of any Chinese involvement.

Despite operating this system for some time, Pentagon officials were reportedly not informed of its implementation by Microsoft. The existing arrangement relied heavily on trust, without solid guidelines addressing potential threats to security. This lack of formal oversight raised considerable concern within the Pentagon.

Third-Party Audit and DoD Investigation Launched

A combination of Microsoft's internal review and a Defense Department-initiated investigation seeks to address worries including potential malware issues introduced through the program. Expressing his concerns, Hegseth shared, "It blows my mind that I’m even saying these things with such common sense that we ever allowed it to happen." This sentiment underscores the magnitude of this challenge.

In response to what he termed a "breach of trust," Hegseth disclosed the issuance of a formal letter to Microsoft. This letter demands a third-party review of the "digital escort" program, with an inspection of both the code and submissions made by Chinese nationals.

Focusing on the Future Security of Cloud Systems

Microsoft has expressed its commitment to national security. A company spokesperson conveyed that the company is dedicated to providing robust security services to the U.S. government. Furthermore, Microsoft will work collaboratively with government partners to reassess and refine security measures.

The stakes of these security lapses are high. Hegseth remains focused on discovering whether the developers placed any malicious code within the systems. "These investigations will help us determine the impact of this digital escort workaround," he noted.

Anonymous insiders have admitted to placing considerable trust in the system's integrity without the ability to verify its safety. As one anonymous former developer highlighted, the dependency on trust, rather than concrete evidence, marked a significant vulnerability.

Ensuring All Software Vendors Comply

The Department of Defense's scrutiny extends beyond Microsoft. All software vendors engaged in contracts with the DoD are under directive to eliminate potential threats embedded within their systems by identifying and terminating Chinese involvement.

Efforts to make these adjustments are part of a larger strategy aimed at preserving national security over profit, according to Hegseth. Echoing this sentiment, he asserted, "We expect vendors doing business with the Department of Defense to put U.S. national security ahead of profit maximization."

As the audit and investigations progress, the goal remains clear: ensure the integrity and security of the DoD cloud infrastructure. By pivoting away from past oversights, the DoD can re-establish confidence in its digital defenses. This change marks a pivotal moment for national security protocols in cloud systems.

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About Ashton Snyder

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