Microsoft Faces Backlash Over Use of China-Based Engineers on Pentagon Cloud Projects, Responds with Policy Changes
Microsoft faces backlash over claims Chinese engineers accessed Pentagon cloud systems; company responds with policy changes to tighten security.
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Microsoft is under intense scrutiny following serious allegations that it allowed engineers based in China to assist with highly sensitive U.S. Department of Defense (DoD) cloud systems. The claims, made by Navy whistleblower Tom Schiller in an interview with journalist Laura Loomer, suggest that Chinese engineers may have had access to classified military information through Microsoft’s Government Azure cloud platform for over a decade.
In a widely shared post on X (formerly Twitter), Loomer accused Microsoft of enabling “full access to classified information out of the Pentagon,” further alleging that the practice began during the Obama administration. She called for a criminal investigation into the tech giant's handling of national security data.
🔁 Microsoft Responds to Allegations
Microsoft’s Chief Communications Officer, Frank Shaw, acknowledged the controversy and confirmed immediate changes to the company’s internal protocols.
“In response to concerns raised earlier this week about US-supervised foreign engineers, Microsoft 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,” Shaw said in an official statement.
Although Microsoft stopped short of denying that foreign-based teams had previously been involved, the company emphasized its renewed commitment to cybersecurity and announced that it would work closely with U.S. national security partners to reassess and tighten existing procedures.
🛡 Microsoft’s Role in U.S. Defense Contracts
Microsoft has played a central role in federal tech projects over the past decade. In 2019, the company secured the Pentagon’s $10 billion Joint Enterprise Defense Infrastructure (JEDI) cloud contract, though it was later scrapped in 2021 following a legal battle with Amazon. In 2022, Microsoft won a share of a $9 billion multi-vendor cloud contract, further embedding itself in U.S. defense infrastructure.
According to the company’s latest earnings report, more than half of Microsoft’s $70 billion Q1 revenue was generated from U.S.-based customers, underscoring the strategic importance of its federal partnerships.
