Pentagon Mandates Comprehensive Audit of Microsoft Cloud Systems Following Chinese National Involvement Revelations

The U.S. Department of Defense (DoD) has ordered an independent third-party audit of Microsoft's entire system and processes used to manage DoD cloud and software assets, with a specific focus on any involvement of Chinese nationals. This decisive action follows revelations regarding Microsoft's prior use of China-based engineers in sensitive defense cloud environments, prompting national security concerns. Secretary of Defense Pete Hegseth emphasized the immediate cessation of such practices.

The mandate stems from an investigative report by ProPublica in July, which detailed Microsoft's practice of employing China-based engineers, supervised by U.S. "digital escorts," to provide technical support for U.S. military operations. This arrangement, which Microsoft had maintained for years, raised significant questions about data security given China's laws that can compel its citizens and companies to cooperate with intelligence efforts. Microsoft's security plan submitted to the DoD in 2025 reportedly omitted key details about this practice.

In response to the ProPublica report, Secretary Hegseth swiftly announced, "The use of Chinese nationals to service Department of Defense cloud environments – it’s over." The Pentagon issued a formal letter of concern to Microsoft, citing a "breach of trust." Following these concerns, Microsoft stated in July that it had ceased using China-based technicians to support U.S. government customers, including the DoD cloud and related services.

The audit is designed to be exhaustive, examining "every software asset, line of code, or even oversight that was handled by a Chinese national," as noted by Bryan Beal 🎧 in a widely circulated tweet. The DoD further requires Microsoft to publicly report the findings, underscoring a commitment to transparency. Secretary Hegseth articulated the audit's core objective: "Did they put anything in the code that we didn’t know about? We are going to find out."

This development underscores growing U.S. government scrutiny over foreign involvement in critical defense infrastructure. Senator Tom Cotton (R-Arkansas) had previously urged the Pentagon for greater transparency regarding Chinese engineers' access to military data. Beyond Microsoft, the Defense Secretary has directed all software providers to identify and terminate any Chinese involvement in DoD systems, signaling a broader push to enhance national security protocols across the defense supply chain.