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Microsoft President Brad Smith acknowledged the company’s role in major security breaches that allowed China-linked hackers to infiltrate federal government computer networks in a Congressional hearing this week. The executive also defended the company’s operations in the communist dictatorship.
Smith claimed that Microsoft’s data centers and cloud services in China primarily serve American and other non-Chinese corporations, helping to protect their trade secrets. He also noted that Microsoft’s business in China accounts for only 1.4 percent to 1.5 percent of the company’s total revenue. When pressed by Rep.
The hearing was organized in response to a scathing government report in April, which found “a cascade of errors” by Microsoft that allowed state-backed Chinese hackers toused by government employees and senior officials, including the email of Commerce Secretary Gina Raimondo.
Smith assured lawmakers that Microsoft fully accepted the report’s findings and is implementing its recommendations. The company has deployed approximately 34,000 engineers to focus on security, which Smith described as “the single largest cybersecurity engineering project in the history of digital technology.
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