Microsoft announced on Friday that it will cease using engineers based in China to provide technical support for U.S. military cloud projects, following a revealing investigative report by ProPublica and heightened scrutiny from federal officials.

The decision comes amid growing cybersecurity concerns and a directive from U.S. Defense Secretary Pete Hegseth to conduct a two-week review of Pentagon cloud computing contracts. The move is a direct response to a ProPublica exposé that revealed China-based Microsoft engineers had been involved in sensitive military tech support roles.

The report described how these engineers worked on U.S. military cloud systems under the oversight of so-called “digital escorts”—subcontractors hired to provide security oversight but who often lacked the technical expertise to understand or evaluate the actual work being done.

These digital escorts held U.S. security clearances, yet their inability to verify the actions of the Chinese-based personnel raised alarms about potential cybersecurity vulnerabilities.

The revelations prompted swift political reaction. A U.S. senator publicly questioned the practice, urging immediate safeguards to protect national security interests.

“This type of outsourcing creates an unacceptable risk,” one official told Reuters. “Critical military systems must be protected by personnel with both clearance and competence.”

In response, Microsoft has moved quickly to contain the fallout. The company stated that it will now limit technical support for military systems to U.S.-based personnel or those working within approved allied territories.

The incident highlights the complex balance between global tech collaboration and national security, especially as the U.S. government deepens its partnerships with private cloud providers like Microsoft, Amazon, and Google through multi-billion-dollar defense contracts.

A spokesperson for the Department of Defense said the internal review will assess not only Microsoft’s practices but also broader policies governing foreign-based labor on sensitive infrastructure.

As the review unfolds, Microsoft’s decision may set a precedent for stricter oversight of offshore involvement in U.S. defense technologies.