financetom
Business
financetom
/
Business
/
Microsoft to End Use of China-Based Engineers on Pentagon Cloud Projects
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Microsoft to End Use of China-Based Engineers on Pentagon Cloud Projects
Jul 21, 2025 3:18 AM

06:02 AM EDT, 07/21/2025 (MT Newswires) -- Microsoft ( MSFT ) said Friday that it will no longer use engineers based in China to provide technical support to the US military, after a ProPublica report prompted a directive from Defense Secretary Pete Hegseth to initiate a two-week review of the Pentagon's cloud contracts.

"In response to concerns raised earlier this week about US-supervised foreign engineers, Microsoft ( MSFT ) has made changes to our support for US Government customers to assure that no China-based engineering teams are providing technical assistance for DoD Government cloud and related services," Microsoft ( MSFT ) spokesperson Frank Shaw wrote on X.

The ProPublica report revealed that Microsoft ( MSFT ) had restricted foreign engineers from directly accessing sensitive cloud systems. The Chinese employees were overseen by U.S.-based 'digital escorts', who are contractors with security clearances. The report noted that these escorts often lacked the technical skills to detect potential security threats.

In a video posted on X on Friday, Defense Secretary Pete Hegseth said, "China will no longer have any involvement whatsoever in our cloud services, effective immediately."

Hegseth said a two-week review will be initiated to ensure similar practices are not being undertaken in any of the contracts involving the Department of Defense.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Cloudflare Insider Sold Shares Worth $6,515,117, According to a Recent SEC Filing
Cloudflare Insider Sold Shares Worth $6,515,117, According to a Recent SEC Filing
May 26, 2025
04:28 PM EDT, 05/22/2025 (MT Newswires) -- Thomas J Seifert, Chief Financial Officer, on May 20, 2025, sold 41,556 shares in Cloudflare ( NET ) for $6,515,117. Following the Form 4 filing with the SEC, Seifert has control over a total of 241,550 Class A Common shares of the company, with 241,550 shares held directly. SEC Filing: https://www.sec.gov/Archives/edgar/data/1477333/000147733325000092/xslF345X05/wk-form4_1747944635.xml ...
Freehold Royalties Launching Normal-Course Issuer Bid
Freehold Royalties Launching Normal-Course Issuer Bid
May 26, 2025
04:27 PM EDT, 05/22/2025 (MT Newswires) -- Freehold Royalties ( FRHLF ) after close of trade Thursday said the Toronto Stock Exchange has accepted Freehold's notice of intention to launch a normal-course issuer bid (NCIB). Under the NCIB, Freehold may repurchase and cancel up to 13.69-million shares, approximately 10 percent of the company's 163.96-million issued and outstanding shares as of...
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Aug 17, 2025
SYDNEY, Aug 18 (Reuters) - Google agreed on Monday to pay a A$55 million ($35.8 million) fine in Australia after the consumer watchdog found it had hurt competition by paying the country's two largest telcos to pre-install its search application on Android phones, excluding rival search engines. The fine extends a bumpy period for the Alphabet-owned internet giant in Australia,...
FTC drops case against Pepsi alleging price discrimination
FTC drops case against Pepsi alleging price discrimination
May 26, 2025
May 22 (Reuters) - The U.S. Federal Trade Commission on Thursday dropped its case accusing PepsiCo ( PEP ) of price discrimination that favored Walmart ( WMT ), and criticized former Chair Lina Khan for rushing the case out. The lawsuit filed in New York had accused the soft drink manufacturer of violating the Robinson-Patman Act. ...
Copyright 2023-2026 - www.financetom.com All Rights Reserved