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Defense sector official in U.S. Congress highlights potential hazard in military supply agreements with private companies

Microsoft's "digital chaperone" agreement with its Chinese staff was under scrutiny, as the chairman of the Senate Intelligence Committee raised concerns about its security implications.

Defense industry contractors pose a potential risk to the department's supply chain, according to a...
Defense industry contractors pose a potential risk to the department's supply chain, according to a leading senator in the United States.

Defense sector official in U.S. Congress highlights potential hazard in military supply agreements with private companies

In the wake of a ProPublica story published on July 15, 2025, Senate Intelligence Committee Chairman Tom Cotton has demanded a comprehensive investigation into all contractors employing Chinese personnel on Defense Department (DoD) systems.

The explosive report revealed that Microsoft has allowed Chinese-based engineers to perform sensitive maintenance on the Pentagon’s cloud computing systems, with limited oversight by underqualified American “digital escorts” who have security clearances but often lack sufficient coding expertise to verify the integrity of the work.

Cotton has formally requested the DoD to investigate all contractors, including details about subcontractors and the hiring and training processes for so-called “digital escorts” who supervise Chinese engineers remotely. This action follows concerns about potential vulnerabilities or unintentional backdoors that might expose U.S. military systems to espionage risks, given China’s position as a leading cyber adversary.

The issue has raised major concerns among national security and cybersecurity experts who fear that the current setup, established during the Obama administration and expanded since, may have allowed China extended indirect access to sensitive military networks. This has prompted calls for a shift toward greater domestic trusted workforce capacity and enhanced cybersecurity protocols within federal contractors.

Microsoft has responded to the concerns by making changes to its support for U.S. Government customers to ensure that no China-based engineering teams are providing technical assistance for DoD Government cloud and related services. However, the DoD’s response and subsequent changes following Cotton’s request are not yet publicly known, indicating that the investigation is active but ongoing.

The letter from Tom Cotton to Secretary of Defense Pete Hegseth reflects deep unease within Congress about the security of military computer systems. The situation suggests that high-profile government contractors with large Chinese businesses are likely to face increased scrutiny over their supply-chain security practices.

The story has been updated with a comment from Microsoft’s spokesperson, Frank Shaw, who emphasised Microsoft’s commitment to the security and privacy of its customers. Nonetheless, the unease remains, and the issue has become a focal point for federal cybersecurity reassessment as of late July 2025.

[1] ProPublica, July 15, 2025, Microsoft's Use of Chinese Engineers in Critical Pentagon Systems Raises Concerns [2] The New York Times, July 21, 2025, Senate Committee Demands Investigation into Defense Department's Reliance on Chinese Workers [3] The Washington Post, July 22, 2025, Microsoft's Use of Chinese Engineers in Pentagon Systems: A Cybersecurity Nightmare [4] The Wall Street Journal, July 23, 2025, Senate Demands Investigation into Defense Department's Contractors' Reliance on Chinese Workers

The vulnerability revealed by the use of Chinese engineers in Microsoft's maintenance of the Pentagon's cloud computing systems has sparked concerns about cybersecurity, as the United States military may be exposed to espionage risks. This situation has prompted Senator Tom Cotton to demand a comprehensive investigation into all contractors, particularly focusing on subcontractors and the hiring and training processes for supervising digital escorts.

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