Microsoft has announced that it will no longer allow engineers working in China to provide technical support for American defense clients, including the Department of Defense, utilizing its Azure cloud platform.

This decision follows an investigation by ProPublica that revealed the involvement of Chinese specialists in supporting the Pentagon's cloud services, potentially posing risks to US cybersecurity.

According to Microsoft representative Frank Shaw, the company has revised its approach to technical support for US government clients to ensure that no engineering team from China will have access to projects related to the Department of Defense or other government entities. Previously, Chinese engineers worked under the remote supervision of so-called "digital guides" from the US, who often had lower technical qualifications.

Azure is one of Microsoft’s key revenue streams, accounting for more than a quarter of the company’s total profit. In 2019, Microsoft won a $10 billion Pentagon contract but it was canceled in 2021. In 2022, the company secured new cloud contracts alongside Amazon, Google, and Oracle, totaling up to $9 billion.

US Defense Secretary Pete Hegseth called the situation "unacceptable" and promised to review other systems for similar risks. Microsoft, for its part, assured that it will continue working with the US government, adapting its security protocols to address emerging threats.