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Pentagon chief Pete Hegseth confirmed that the Defense Department’s cloud services were previously supported by China-based engineers, raising national security concerns. Microsoft admitted to using teams in China for technical assistance but assured that no China-based staff will be involved moving forward. ProPublica revealed that limited U.S. oversight left critical Pentagon systems vulnerable, with personnel lacking the expertise to manage them effectively. Amid growing tensions with Beijing, Microsoft has pledged stricter controls to secure DoD cloud services against potential foreign risks.

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00:00that some tech companies have been using cheap Chinese labor to assist with DOD cloud services.
00:07This is obviously unacceptable, and that's why today I'm announcing that China will no longer
00:12have any involvement whatsoever in our cloud services effective immediately. But we have to
00:18ensure the digital systems that we use here at the Defense Department are ironclad and impenetrable.
00:24Earlier this week, we were alerted to a potential vulnerability in our DOD computer systems,
00:30and we've been checking into it ever since. It turns out that some tech companies have been using
00:35cheap Chinese labor to assist with DOD cloud services. This is obviously unacceptable,
00:43especially in today's digital threat environment. Now, this was a legacy system created over a
00:49decade ago during the Obama administration. But we have to ensure the digital systems that we
00:54use here at the Defense Department are ironclad and impenetrable. And that's why today I'm
01:00announcing that China will no longer have any involvement whatsoever in our cloud services
01:06effective immediately. And at my direction, the department will also initiate as fast as we can
01:12a two-week review or faster to make sure that what we uncovered isn't happening anywhere else
01:18across the DOD. We will continue to monitor and counter all threats to our military infrastructure
01:24and online networks. And I want to thank all those Americans out there in the media and elsewhere
01:29who raised this issue to our attention so we could address it. And that's why we're talking to you
01:34today. As the president would say, thank you for your attention to this matter, and God bless our
01:39warfighters. I'm going to sign that memo right now, initiating that review.
01:43Earlier this week, we were alerted to a potential vulnerability in our DOD computer systems. And
01:54we've been checking into it ever since. It turns out that some tech companies have been using cheap
01:59Chinese labor to assist with DOD cloud services. This is obviously unacceptable, especially in today's
02:08digital threat environment. Now, this was a legacy system created over a decade ago during the Obama
02:14administration. But we have to ensure the digital systems that we use here at the Defense Department
02:19are ironclad and impenetrable. And that's why today I'm announcing that China will no longer have
02:25any involvement whatsoever in our cloud services effective immediately. And at my direction, the
02:33department will also initiate, as fast as we can, a two-week review or faster to make sure that what
02:39we uncovered isn't happening anywhere else across the DOD. We will continue to monitor and counter all
02:45threats to our military infrastructure and online networks. And I want to thank all those Americans
02:51out there in the media and elsewhere who raised this issue to our attention so we could address it.
02:56And that's why we're talking to you today. As the president would say, thank you for your attention to
03:01this matter. And God bless our warfighters. I'm going to sign that memo right now, initiating that review.
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