Microsoft claims it is changing practices to ensure that engineers based in China no longer provide support to U.S. defense clients using the company’s Azure cloud services. The Company was previously called out for using engineers based in the hostile communist nation to support Pentagon and other critical defense systems.
CNBC reports that Microsoft has announced that it will bar engineers in China from providing support to U.S. defense clients using its cloud services, following aninvestigation that raised national security concerns. The report revealed that Chinese-based Microsoft engineers had been helping maintain Defense Department computer systems, potentially exposing sensitive military data to cybersecurity risks.
As Breitbart News previously reported:
A ProPublica investigation has uncovered that Microsoft is relying on engineers based in China to help maintain sensitive computer systems for the U.S. Department of Defense, with only minimal oversight from U.S. personnel. This arrangement, which Microsoft deems critical to winning the Pentagon’s cloud computing business, could potentially expose some of the country’s most sensitive data to espionage and hacking by China.
The system relies on U.S. workers with security clearances, known as “digital escorts,” to supervise the Chinese engineers and serve as a firewall against malicious activities. However, ProPublica found that these escorts often lack the advanced technical skills needed to effectively monitor the foreign workers, who possess far greater coding expertise. Some escorts are ex-military with little software engineering experience, earning barely above minimum wage.
According to Frank Shaw, Microsoft’s chief communications officer, the company 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.” This change primarily affects Microsoft’s Azure cloud services division, which analysts estimate generates more than 25 percent of the company’s revenue, making it larger than Google Cloud but smaller than Amazon Web Services.
The report revealed that Microsoft’s Chinese Azure engineers were overseen by “digital escorts” in the U.S., who typically had less technical expertise than the employees they managed overseas. This arrangement raised concerns about potential vulnerabilities to cyberattacks from China. Defense Secretary Pete Hegseth described the architecture as “a legacy system created over a decade ago, during the Obama administration,” and deemed it “obviously unacceptable, especially in today’s digital threat environment.”
Microsoft initially told ProPublica that its employees and contractors were adhering to U.S. government rules. However, in light of the recent concerns, the company has taken swift action to modify its practices. Shaw stated, “We remain committed to providing the most secure services possible to the US government, including working with our national security partners to evaluate and adjust our security protocols as needed.”
The Defense Department has announced that it will review its systems to identify any similar activities and take necessary actions to ensure the security of its cloud services. As the digital threat landscape continues to evolve, it is crucial for companies like Microsoft to remain vigilant and proactively address potential vulnerabilities to protect the interests of their clients, particularly those in sensitive sectors such as defense.
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‘What Do All Those PhDs Do?’ – Bessent Calls For ‘Fundamental Reset’ Of Financial Regulations
Speaking at the Federal Reserve Capital Conference, Bessent said there is a need for “deeper reforms” in bank regulation, noting that the system has been marked by “regulation by reflex,” where bank regulators tend to introduce new rules after issues have already occurred.
“Rather than preempting crises, regulators all too often react to them after the fact. They play the role of a hazmat cleanup team instead of preventing dangerous spillovers in the first place,” Bessent said.
“Rather than reflexively regulate anything that hits the headlines, we need to instead be more explicit about our vision for the financial system,” he added.
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