Microsoft says it will no longer use engineers in China for Department of Defense work
The existing system reportedly relied on 'digital escorts' to supervise the China-based engineers. But according to Pro Publica, those escorts — U.S. citizens with security clearances — sometimes lacked the technical expertise to properly monitor the engineers.
In response to the report, Secretary of Defense Pete Hegseth wrote on X, 'Foreign engineers — from any country, including of course China — should NEVER be allowed to maintain or access DoD systems.'
On Friday, Microsoft's chief communications officer Frank X. Shaw responded: 'In response to concerns raised earlier this week about US-supervised foreign engineers, Microsoft has made changes to our support for US Government customers to assure that no China-based engineering teams are providing technical assistance for DoD Government cloud and related services.'
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CNN
a few seconds ago
- CNN
Exit bans in China: What are they and why are they causing friction with US?
China recently banned a foreign Wells Fargo executive and a United States government employee from leaving its territory, spotlighting its opaque judicial and security system and rekindling concerns over the risks facing foreign companies and nationals operating there. Exit bans are a common practice employed by the Chinese authorities to prevent individuals under suspicion from leaving the country – sometimes on legitimate grounds, but other times for political reasons, experts said. The latest bans come as the world's second-largest economy seeks to court foreign investment, and inject fresh uncertainties to ongoing US-China trade talks ahead of an August 12 tariff deadline. Here's what you need to know about the bans and their implications for bilateral relations with the US. China's Ministry of Foreign Affairs confirmed on Monday the exit ban imposed on Wells Fargo banker Mao Chenyue, saying she had been 'involved in a criminal case' and is obligated to cooperate with the investigation, without providing further details. Meanwhile, the US State Department said on Monday that China blocked an employee of the United States Patent and Trademark Office, under the Commerce Department, from leaving the country. A State Department spokesperson told CNN that it 'has no higher priority than the safety and security of American citizens.' 'We are tracking this case very closely and are engaged with Chinese officials to resolve the situation as quickly as possible,' the spokesperson said. The New York Times reported, citing a State Department document it obtained, that the Commerce Department employee has been prevented from leaving the country since mid-April, and questioned primarily about his US Army background. The State Department did not disclose to CNN the identity of the US citizen facing an exit ban. Asked about the Wells Fargo banker banned from leaving China, the State Department spokesperson said: 'Due to privacy and other considerations, we have no further comment at this time.' The US Embassy in China said it has raised concerns with Chinese authorities about the 'impact arbitrary exit bans have on our bilateral relations.' 'The Chinese government has, for many years, imposed exit bans on US citizens and other foreign nationals in China, often without a clear and transparent process for resolution,' a spokesperson for the embassy told CNN. James Zimmerman, a lawyer based in Beijing and former chairman of the American Chamber of Commerce in China, said the government's use of exit bans is 'nothing new,' and they have often been used in investigations to prevent witnesses or suspects viewed as flight risks from leaving China. 'Most of the time, there is a legitimate legal basis for the exit ban, while there are indeed instances of misuse of the process by the government authorities, including for political reasons,' he said. While there are procedures for having an exit ban lifted, he added, 'the lack of transparency and absence of a workable bail system make lifting an exit ban a time-consuming and challenging process.' China does not provide numbers of people who are subject to exit bans, though the practice has been employed against its citizens much more frequently than against foreigners. Many human rights lawyers, activists and their families have been placed under such restrictions. Last year the Dui Hua Foundation, a human rights organization, estimated that more than 30 Americans were under exit bans. Beyond targeting subjects of criminal investigations, Beijing has imposed exit bans on people who are not directly involved in the legal proceedings. As early as 2019, the US issued a travel advisory urging Americans to 'exercise increased caution' when traveling to China because of its use of exit bans 'coercively.' The advisory said the restrictions are used to 'compel US citizens to participate in Chinese government investigations, to lure individuals back to China from abroad, and to aid Chinese authorities in resolving civil disputes in favor of Chinese parties.' In one notable example in 2018, China blocked Victor and Cynthia Liu, two Americans then aged 19 and 27, from leaving the country in order to pressure their father Liu Changming, a high-profile Chinese fugitive, into returning to China, where he was wanted for financial crimes. Only three years later were they allowed to return home. Zimmerman also noted that foreigners working with China's state-owned enterprises (SOE) could also be subject to exit bans. The Central Commission on Discipline Inspection, the ruling Communist Party's top anti-graft agency, has initiated more investigations in recent years, and used exit bans to force foreigners to assist in investigations targeting government officials and SOEs, he said. 'Foreign persons who have had extensive business relationships with SOEs should be cautious, especially if they become aware that the SOEs they had dealings with are a target of investigations,' he said. China has passed or amended a series of laws in recent years to expand the scope for the use of exit bans, especially on national security grounds. In 2023, it amended its already extensive counterespionage law, allowing exit bans on Chinese and foreigners under investigation if they are deemed a potential national security risk after leaving the country. A 2023 report on China's expanding use of exit bans by Safeguard Defenders, a human rights group, estimated at least tens of thousands of people in China are placed under exit bans at any one time. And that does not include millions of Tibetans, or Uyghurs in China's northwestern Xinjiang region, who have long been targeted with ethnicity-based exit bans, mostly through the confiscation and denial of passports, it said. Other than the counterespionage law amendment, Beijing has in recent years expanded the remit of its national security apparatus through sweeping legislation, giving authorities broader powers to scrutinize foreign nationals and organizations. Some of those laws have ensnared members of the business community. Just last week, a Beijing court sentenced a Japanese executive for Tokyo-based pharmaceutical firm Astellas Pharma to more than three years in prison for espionage. The executive has been detained in China since 2023. The Embassy of Japan in Beijing told CNN that the guilty sentence handed down to the Japanese national is 'deeply regrettable,' as the country has urged the Chinese authorities repeatedly to release them, through various channels including at the leader and foreign minister levels. 'The detention of Japanese nationals in China is one of the biggest obstacles to improving people-to-people exchanges and public sentiment between Japan and China,' it said. An American businessman in Beijing told CNN on condition of anonymity that concerns rise among the foreign business community every time an exit ban or detention of a foreign national is announced, and there are greater concerns for those who travel to China for short-term business trips. 'Denials by the Foreign Ministry of the detentions or lack of clarity as to why the people are detained only makes matters worse. And more importantly, if people are afraid to visit China, investment will fall,' the businessman said. William Yang, senior analyst at the International Crisis Group, a think tank, noted that companies from countries like Japan, several of whose citizens have been arbitrarily detained by Chinese authorities on espionage grounds, have already reduced the number of staff based in China. 'At a time when China is trying to boost foreign investors' confidence in the country, these developments would be counterproductive to that goal,' he said. For the first half of 2025, China's Commerce Ministry reported a 15.2% drop in foreign investment in the country, compared with the same period last year, as it continues to grapple with a flurry of economic challenges. Joe Mazur, senior analyst at Trivium China, a research and advisory firm, said the use of exit bans and the lack of clarity around specific cases will make foreign companies extremely nervous about sending staff to China, damaging overall business confidence. 'A lack of faith in the impartiality and due process afforded by China's legal system tends to overshadow any sort of justification the Chinese side is likely to make about the legal basis for exit bans,' he said. But Mazur said the development is unlikely to reverse the positive steps the US and China have taken in recent weeks to dial down their trade war. 'Given what's at stake in the US-China trade relationship, I doubt the US will allow these exit ban cases to derail the slight thaw we've seen in US-China ties in the past few weeks,' he said. Still, Yang believed the bans slapped on the two American citizens cast a shadow over the more positive developments in relations between both countries as they try to arrange a potential leaders' summit and reach a permanent trade deal. 'These cases could make it more complicated for China and the US to negotiate the right terms and conditions for the potential Xi-Trump meeting in China, which the US government seems to be prioritizing,' he said. CNN's Marc Stewart in Beijing and Matt Egan contributed reporting.
Forbes
a few seconds ago
- Forbes
‘Starting Today'—Microsoft Confirms Free Windows Update
New updates now here. It's now here. Microsoft's controversial u-turn on Windows 10's end of life has morphed into a free update offer, whereby the problem for 700 million users is postponed. Windows 11 is the faster, better, safer option Microsoft wants the 700 million Windows 10 holdouts to move to. But says 'we understand that moving to a new PC can take time, and we're here to support you throughout the process.' In a Tuesday blogpost, Microsoft says 'starting today, individuals will begin to see an enrollment wizard through notifications and in Settings, making it simple to select the best option for you and enroll in ESU directly from your personal Windows 10 PC.' While the u-turn to the free 12-month security update extension has been reported as including a catch, that just means you need to pick one of Microsoft's options. Using OneDrive for example or some of your reward points. It's essentially a free offer. In other news, Microsoft is also pushing the AI benefits of new Copilot PCs hard, touting a range of new features, as well as the latest push for users to switch Chrome for Edge. 'Microsoft Edge is the only browser built for Windows, offering the most seamless PC browsing experience with AI-powered tools, productivity features, and built-in performance and security features that help you browse quickly and safely.' Meantime, for those already on Windows 11, the company is heralding its latest update as 'the most reliable Windows yet.' Compared to Windows 10 22H2,' it says that Windows 11 24H2 'failure rates for unexpected restarts have dropped by 24%. These improvements reflect deep collaboration across engineering, design, and user research teams and a commitment to making Windows more resilient for everyone.' And for those not yet using Windows 11, there's also the new PC-to-PC migration tool making an appearance, per Windows Latest. The new migration feature 'coming to Windows 11 and 10 was expected, but it's the first time Microsoft has shared details.' Whatever you do — extending updates or taking the still free Windows 11 upgrade, just make sure you do something before October when the usual Windows 10 updates end.
Business Insider
a few seconds ago
- Business Insider
A laid-off Microsoft manager says it's not a personal failure, but he may pivot away from management
Patrice Melekian wanted to experience life in the US, and his job at Microsoft was his ticket. He told Business Insider he had a good, 17-year run with the company — until he got laid off from his manager job in May. He's returned to his home country of France, and while he's still figuring out his next career move, he said he might look outside management for his next role. Like many laid-off workers, Melekian doesn't know exactly why his job was cut. But he said Microsoft leaders have spoken about reducing management layers and improving efficiency — language that has coincided with manager layoffs over the past year. Melekian believes these efforts are part of a broader trend in tech. "Many companies in the tech industry, including Microsoft, have been moving to flatten their organizations to streamline the decision process," said the 54-year-old. In May, Microsoft laid off roughly 6,000 employees in an effort to increase what it calls "span of control" — or the number of employees who report to each manager, Business Insider previously reported. Then, earlier this month, the company laid off roughly 9,000 more workers. A spokesperson told BI earlier this month that the company was focused on reducing management layers and streamlining processes. It's not just Microsoft. Companies like Google, Intel, Amazon, and Walmart have announced plans to reduce the number of managers. This trend, which some have dubbed the "Great Flattening," refGreat Flatteningpush to reduce costs and bureaucracy — moves some corporate executives say will make their organizations more efficient. Microsoft did not respond to BI's request for comment. We want to hear from middle managers, job seekers, and people who've recently landed a job. If you're open to sharing your story, please fill out one or more of the linked Google Forms. Having fewer reports left more time for other work tasks Melekian joined Microsoft in 2007 through an acquisition, taking on a role as a program manager architect. He grew up in France and was living in Paris at the time, but became interested in moving to the US — partly out of curiosity about what it would be like to live there. In 2013, he relocated with his wife and two sons from Paris to Redmond, Washington — home to Microsoft's headquarters — to take a senior program manager role. At the time of his layoff, he was a principal product manager, leading a team of three. While Microsoft's effort to reduce management layers could leave some managers with more direct reports, Melekian said the number of people reporting to him hovered between two and three, depending on business needs — a structure he thinks worked well for his team. He said his role, which required balancing management responsibilities with hands-on project work, didn't change much during his three years as a principal product manager. Having a modest team size gave him the flexibility to spend more time on projects — something he appreciated. "When you have a team of three, you don't have to spend that much time managing," he said. "If a new opportunity came up and everybody was packed, that allowed me to jump in, take some of my own time, and go after it myself." Melekian said he started his principal product manager role during the pandemic, when remote work was widespread at the company. When Microsoft's offices reopened, he had the option to continue working from home and chose to do so. Microsoft's policy currently allows most employees to work remotely at least part of the time, though a decline in productivity could prompt a shift in policy, BI previously reported. His next role might not be in management Though a layoff is rarely happy news, Melekian said the timing was relatively fortunate: He had already been planning to move back to France for personal and family reasons. With his parents getting older, he wanted to be closer in case they needed support. His youngest son also just graduated from high school and plans to attend school in France this fall. "With our children and our own aging parents all being in France, there was nothing holding my wife and me back in the US," he said. Melekian said he's already sold his home in the US and returned to France, but hasn't started actively job hunting yet. He plans to do so later this summer once he's more settled. When his job search picks up, he's not sure whether he'll prioritize management roles or individual contributor positions. He said he may prefer a role with less managerial responsibility — one where he can have a more direct impact. "Manager roles certainly align with my experience, but I may also consider roles where I can contribute directly with my expertise," he said. Melekian said he has a few pieces of advice for people who are dealing with layoffs or career transitions. First, rely on others for advice and support. "You'd be surprised how willing people are to share their own similar experiences and help you navigate transitions," he said. Additionally, he recommended people keep an open mind to different job opportunities — and not rush their next career decision. "A layoff can feel like a personal failure, but it's usually the result of a broader business shift rather than an indication of your worth as a professional," he said. "Use the pause as an opportunity to reassess what's genuinely important for you personally and professionally."
