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Microsoft said it will use a Chinese-based computer engineering team to work on the Pentagon cloud and other confidential systems after the investigation this week caused the highest level of national security concerns that Microsoft has used since 2016.
one ProPublica report released Tuesday Microsoft has alleged that it allows Chinese engineers to assist the Pentagon cloud system with insufficient guardrails to expand its government contract business.
The report has attracted the attention of Republican lawmakers and the Trump administration, Secretary of Defense Pete Hegseth Stick to Friday, foreign engineers from “no country … should never be allowed to maintain or access to the Department of Defense systems.” He added that the Defense Ministry will “invest this issue as soon as possible.”
Fox News Digital approached Microsoft after Hegseth showed signs that the Pentagon would investigate the matter, responding that it would stop using Chinese-based computer engineers to help the sensitive defense department cloud.
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Pete Hegseth resolves Microsoft security issues. (AP Photo/Rick Rycroft; Philip Fong/AFP via Getty Images; Omar Havana/Getty Images)
“In response to concerns raised earlier this week about U.S. overseeing foreign engineers, Microsoft has changed our support for U.S. government customers to ensure there is no Chinese engineering team providing technical assistance to the Department of Defense government cloud and related services,” said Frank Shaw, chief communications officer.
“We remain committed to providing the safest services to the U.S. government, including working with our national security partners to evaluate and adapt our security protocols as needed.”
ProPublica’s ProPublica report released earlier this week spurred Microsoft’s action, citing current and former employees and government contractors of Microsoft’s cloud computing program deployed in 2016. The program aims to meet federal contract regulations, using a system of “digital companion” systems to develop a global cybersecurity official based on China, such as creating an institution in China, where they can create an institution on the institution, so they can do the institution’s handling in the institution, so they can do the institution’s handling in China. Department of Defense guidelines require people to process sensitive data that are U.S. citizens or permanent residents.

Flags of the United States and China are flying at the Fairmont Peace Hotel in Shanghai, China on April 25, 2024. (Wang Gang/VCG via Getty Images)
According to sources spoken by Propublica, including some people who are very familiar with the hiring process for the $18-hour “digital escort” position, hired technicians lack sufficient technical expertise to prevent rogue Chinese employees from hacking into the system or transferring classified information to the CCP.
Sources detailed that escorts are usually a security permit for former military personnel, rather than their technical capabilities, and often lack the skills to evaluate the code used by engineers they supervise.
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The ProPublica report notes that Microsoft uses its escort system to process sensitive government information below the “categorization”. These include “data involving the protection of life and financial destruction.” In the Ministry of Defense, data are classified as “Impact Levels” IV and Fifth, Propublica reports include directly supported materials Military operations.
People in China are under thorough legal jurisdiction, forcing government cooperation and data collection.

Pentagon in Arlington, Virginia. (Employee/AFP via Getty Image)
Before Microsoft announced on Friday it would stop using Chinese-based engineers for sensitive defense sector programs, the company defended its “digital escort” program, noting that all personnel and contractors with privileged access must pass a federally approved background check. The company also pointed to a response from the Defense Information Systems Agency, which the agency said it used “digital escorts” “in certain unclassified environments.”
“For certain technical requirements, Microsoft interacts with our global team of subject matter experts to provide support through authorized U.S. personnel, which is consistent with the U.S. government requirements and processes,” a company spokesperson told Fox News Digital Tuding in Fox News Digital Tuding. “In these cases, global support personnel do not have direct access to customer data or customer systems.”
The spokesperson added at the time Microsoft Adhesive Comply with federal security requirements outlined by the Department of Defense and the federal risk and authorization management program established in 2011 to address the risks of turning to cloud-based computing with servers that are entirely government-controlled.
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“We have established mitigation measures at the platform level and detect and prevent threats through security and monitoring controls. This includes approving workflows and automated code reviews to quickly detect and prevent the introduction of vulnerabilities,” a spokesperson said. “This production system support model has been approved by the U.S. government and reviewed regularly.”
When commenting on this story, the Pentagon recommended Fox News Digital to Hegseth’s earlier Friday comments about “Investigating the Microsoft Project” and “Announcement of Foreign Engineers.”

Senior News Analyst & National Affairs Writer
Prabhat Sharma is a veteran journalist with over 12 years of experience covering national news, current affairs, and breaking stories across India. Known for his analytical approach and in-depth reporting, Prabhat brings clarity to complex topics and delivers content that informs, educates, and empowers readers.
He is passionate about political transparency, policy analysis, and the evolving landscape of Indian journalism.
When he’s not writing, you’ll find him reading non-fiction, watching documentaries, or exploring offbeat destinations