Overview

• Defense Secretary Pete Hegseth said the use of Chinese nationals in Defense Department cloud environments is ending immediately.
• Hegseth issued a formal letter of concern to Microsoft over the practice, calling it a breach of trust.
• The Pentagon ordered a third-party audit of Microsoft’s Digital Escorts program, including review of code and submissions by Chinese contributors.
• Hegseth directed software vendors to identify and terminate any Chinese involvement across DoD systems.
• The action comes after ProPublica’s July report; Microsoft has since said it will no longer use China-based technicians for military support.