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Microsoft: Chinese Engineers Excluded from Defense Contracts

Posted on July 19, 2025

Microsoft Halts Use of Chinese Engineers for US Defense Department Projects

Microsoft has announced that it will no longer employ engineers based in China for work involving the US Defense Department’s government cloud and related services. This decision comes amid growing concerns about the security implications of foreign engineers accessing sensitive US government systems.

Frank Shaw, Microsoft’s communications lead, stated that the move was made in response to “concerns raised earlier this week about US-supervised foreign engineers.” He emphasized that the company remains committed to delivering the highest level of security for the US government. “We are working with our national security partners to evaluate and adjust our security protocols as needed,” he wrote on X.

The issue gained attention after Senator Tom Cotton (R-Ark.) sent a letter to Defense Secretary Pete Hegseth expressing worries about the involvement of Chinese workers in DoD IT operations. While acknowledging that Chinese employees are accompanied by US citizens who act as “digital escorts” to monitor their activities, Cotton argued that these individuals often lack the technical expertise required to detect malicious code or suspicious behavior.

Cotton requested that Microsoft provide details about the contractors employing Chinese personnel on these projects, as well as information about subcontractors responsible for hiring the “digital escorts” and the type of security training they receive. He also highlighted the broader threat posed by China’s cyber capabilities, noting that their infiltration of critical infrastructure, telecommunications networks, and supply chains represents one of the most significant dangers to the United States.

Defense Secretary Hegseth responded to Cotton’s concerns, stating that the Department of Defense is “already looking into this ASAP.” He added that foreign engineers—regardless of their country of origin—should never be allowed to maintain or access DoD systems.

The controversy came to light following an investigation by ProPublica, which revealed that Microsoft had been using “digital escorts” to monitor Chinese engineers since 2016. These escorts, who are often American workers, are tasked with overseeing the actions of their Chinese counterparts. However, the process involves minimal oversight, with escorts frequently copying and pasting the engineers’ commands into the federal cloud. One anonymous escort told ProPublica, “We’re trusting that what they’re doing isn’t malicious, but we really can’t tell.”

This development marks the latest in a series of efforts by the US government to limit Chinese influence on critical infrastructure and technology systems. In April, the Federal Communications Commission (FCC) proposed banning electronics vendors from using Chinese labs to test their products. More recently, the agency has pushed to exclude Chinese companies and technology from undersea internet cables connected to the United States.

As the debate over cybersecurity and foreign influence continues, the decision by Microsoft to halt the use of Chinese engineers reflects a broader shift in how US companies and government agencies approach the risks associated with international collaboration in sensitive technological sectors. The incident underscores the ongoing challenges of balancing global partnerships with national security interests in an increasingly interconnected world.

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