Defense Secretary Pete Hegseth announced on Wednesday that the Pentagon has ended Microsoft’s decade-old “digital escorts” program. This initiative allowed Chinese engineers, monitored by U.S. contractors, to work on sensitive defense cloud systems. Hegseth stated that the Department of Defense (DOD) is conducting an audit and an investigation to evaluate the program’s implications for national security.
In a video statement, Hegseth remarked that the DOD was aware of these “legacy programs from the Obama and Biden administrations” related to digital escorts. He noted that for nearly ten years, a Chinese coder, working remotely under U.S. contractor supervision, assisted with a sensitive DOD cloud system, which he labeled as carrying “unacceptable risks.”
“We were essentially allowing the use of our cloud system for Chinese citizens, and that’s no longer happening,” Hegseth commented. “We’ve formally expressed our concerns to Microsoft regarding this breach of trust. It’s crucial that we undertake a third-party audit of Microsoft’s digital escort initiative that includes submissions by Chinese nationals. This audit will be at no cost to U.S. taxpayers.”
Hegseth explained that the DOD is pursuing two investigations: one focusing on the wider digital escort program and another examining the contributions of the Chinese engineers involved. Additionally, the DOD is requiring all contractors to identify and eliminate any roles that China played in this system.
Microsoft’s digital escort model first garnered attention back in July. An investigation by Propobrica found that Chinese engineers were sending code instructions via minimally trained “escorts.” Critics flagged this arrangement as a potential risk for exposing sensitive military information to espionage.
This concern was echoed by Senator Tom Cotton (R-AR), who noted the Pentagon’s unease about foreign engineers accessing DOD systems. In previous remarks, Hegseth affirmed, “We must never allow any country, including China, to maintain or access our DOD systems.”
This situation underscores ongoing worries about Microsoft’s connections to China. Recently, Microsoft Research Asia has been scrutinized due to partnerships with Chinese universities linked to the People’s Liberation Army. Critics have also pointed out Microsoft’s provision of AI tools to Chinese firms via the Azure platform, despite having formal restrictions in place. Earlier in the year, Microsoft vowed to halt using China-based engineers and commit to safeguarding the Pentagon’s systems after reports raised alarms about potential vulnerabilities.
Hegseth stressed that the Pentagon is collaborating with other federal agencies to examine all networks for foreign involvement.
“We expect vendors to prioritize national security when they do business with the Department of Defense, rather than chasing profits,” Hegseth noted. “This situation shouldn’t have occurred, but upon its discovery, I acted decisively to address it.”
The Pentagon’s decision is part of a larger initiative by the Trump administration to limit Chinese influence in critical U.S. infrastructure. Earlier this month, President Trump called for tighter restrictions on tech companies with Beijing ties, reflecting concerns over foreign influence on the U.S. defense supply chain.
