Republican lawmakers grilled Microsoft executive Brad Smith on Thursday about the company’s business in China, following a devastating hack by Chinese hackers on federal government networks. The House Committee on Homeland Security questioned Smith on how Microsoft could maintain a commercial presence in China while being a critical contractor for the U.S. government.
Smith defended Microsoft’s business in China, stating that it served American interests by protecting the trade secrets of American customers and learning from global markets. He emphasized that Microsoft had denied Chinese government requests for sensitive information, showing a commitment to cybersecurity.
The hearing was in response to a scathing report by the Department of Homeland Security’s Cyber Safety Review Board, which detailed how Chinese hackers infiltrated Microsoft’s systems and compromised the accounts of high-profile individuals, including Commerce Secretary Gina M. Raimondo and the U.S. ambassador to China.
Despite the security lapses highlighted in the report, lawmakers focused on collaboration between the government and private sector to enhance cybersecurity. Smith outlined Microsoft’s efforts to improve security, including a major cybersecurity engineering project and tying executive compensation to cybersecurity progress.
Microsoft’s competitors have seized on the company’s vulnerabilities, with trade groups backed by Google, Amazon, and Meta calling for the government to diversify its technology vendors. Amazon’s CEO emphasized the importance of security for customers choosing A.I. services, highlighting the need for a strong track record in cybersecurity.
The hearing shed light on the complex challenges faced by tech companies operating in China and the critical importance of cybersecurity in today’s digital landscape.
