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Microsoft Halts Use of China-Based Engineers for DOD Computer Systems, Company Reports — ProPublica

"Microsoft’s Cloud Controversy: How Foreign Engineers Could Compromise U.S. Defense Systems"

Microsoft Halts Use of China-Based Engineers for Defense Department Cloud Support Following ProPublica Investigation

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In a significant policy shift, Microsoft has announced it will cease the use of engineers based in China to support cloud computing systems for the U.S. Department of Defense (DoD). This decision follows a revealing investigation by ProPublica, which highlighted potential vulnerabilities in the handling of sensitive government data.

Background of the Investigation

ProPublica’s investigation uncovered that Microsoft had been employing China-based engineers to assist in maintaining critical DoD cloud systems, a practice that raised alarms about cybersecurity risks. The investigation detailed how these foreign engineers operated with minimal oversight from U.S. personnel, potentially exposing sensitive data to espionage from one of the U.S.’s primary cyber adversaries.

Frank Shaw, Microsoft’s Chief Communications Officer, confirmed the company’s decision on X (formerly Twitter), stating, “In response to concerns raised earlier this week about U.S.-supervised foreign engineers, Microsoft has made changes to our support for U.S. Government customers to assure that no China-based engineering teams are providing technical assistance for DoD Government cloud and related services.”

Government Response

The announcement came shortly after Defense Secretary Pete Hegseth expressed his concerns regarding the use of foreign engineers in a post on X. He emphasized that “foreign engineers — from any country, including of course China — should NEVER be allowed to maintain or access DoD systems.” This sentiment was echoed by Republican Senator Tom Cotton, who, in a letter to Hegseth, requested details on which contractors were employing Chinese personnel for DoD information systems.

Senator Cotton highlighted the ongoing threat posed by China, stating, “China poses one of the most aggressive and dangerous threats to the United States, as evidenced by its infiltrations of our critical infrastructure, telecommunications networks, and supply chains.” He urged the DoD to safeguard against potential threats within its supply chain, including those from subcontractors.

The Role of Digital Escorts

The investigation revealed that Microsoft had been utilizing a workforce of U.S.-based "digital escorts"—contractors with security clearances—to oversee the work of foreign engineers. These escorts were responsible for executing commands provided by their overseas counterparts, often without sufficient technical expertise to fully understand or evaluate the tasks being performed. ProPublica reported that this arrangement was critical for Microsoft in securing its federal cloud computing contracts over the past decade.

One escort candidly remarked, “We’re trusting that what they’re doing isn’t malicious, but we really can’t tell.” This lack of oversight raised serious concerns about the integrity of the operations being conducted on sensitive government systems.

Compliance with U.S. Regulations

Since 2011, cloud computing companies seeking to provide services to the U.S. government have been required to demonstrate that personnel handling federal data possess the necessary access authorizations and background screenings. The DoD mandates that individuals managing sensitive information must be U.S. citizens or permanent residents. This regulatory framework posed challenges for Microsoft, which relies on a global workforce.

To navigate these requirements, Microsoft enlisted staffing companies to hire U.S.-based digital escorts who could interact with foreign engineers. These escorts were tasked with executing commands related to system maintenance, such as updating firewalls or troubleshooting issues, based on instructions from overseas engineers.

Microsoft’s Assurance and Future Steps

In response to the concerns raised, Microsoft stated that its operations are consistent with U.S. government requirements. The company emphasized that its global workforce does not have direct access to customer data or systems, and that the digital escorts are trained specifically to protect sensitive information.

Additionally, Microsoft mentioned an internal review process known as “Lockbox,” designed to ensure that requests for access to sensitive data are thoroughly vetted for safety concerns. Insight Global, a contractor providing digital escorts to Microsoft, also stated that it evaluates the technical capabilities of each resource during the hiring process to ensure they possess the necessary skills.

Conclusion

Microsoft’s decision to halt the use of China-based engineers for DoD cloud support marks a critical response to growing concerns about cybersecurity and foreign influence in sensitive government operations. As the landscape of cybersecurity continues to evolve, the implications of this decision will be closely monitored by both government officials and the public.

For ongoing updates and in-depth analysis, readers can subscribe to ProPublica’s newsletter for the latest investigative stories.

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