Microsoft Halts Use of China-Based Engineers for U.S. Military Cloud Support

Microsoft has ceased employing engineers based in China to provide technical support for U.S. Department of Defense cloud services. The decision follows a ProPublica report revealing that Azure engineers in China were managing parts of the Pentagon's cloud infrastructure, supervised by American personnel with reportedly inferior technical skills.

The arrangement raised national security concerns, prompting swift action from Microsoft. "We've adjusted our support structure to ensure no China-based teams assist with DoD cloud services," stated Frank Shaw, Microsoft's communications chief. Critics, including former TRUMP administration officials, labeled the setup as a glaring vulnerability.

This incident underscores growing scrutiny of foreign involvement in critical infrastructure. While unrelated to cryptocurrency markets, the episode highlights escalating U.S.-China tech tensions that could indirectly impact blockchain enterprises operating across borders.