Microsoft’s China Scandal Threatens Pentagon Security

China’s Crumbling Power: Xi’s Struggles and America’s Wake-Up Call

A Regime on the Ropes

Picture this: a Chinese general, once a loyal enforcer for Xi Jinping, vanishes from public view, whispered to have been “suicided” in a Beijing hospital. Top military officials are demoted or disappear entirely. The Chinese Communist Party’s propaganda machine churns out articles praising “collective leadership,” a not-so-subtle jab at Xi’s iron grip. Meanwhile, Chinese engineers, working for Microsoft, are found tinkering with Pentagon software—despite warnings that were ignored for years. This isn’t the plot of a geopolitical thriller. It’s the reality of China in July 2025, as described by Gordon Chang, author of Plan Red: China’s Project to Destroy America, in a recent interview on Stakelbeck Tonight. The signs are unmistakable: Xi Jinping, the man who’s ruled China with an unyielding hand, is losing control. But what does this mean for America, caught in the crosshairs of a faltering yet dangerous adversary?

The Chinese Communist Party (CCP) has long projected an image of unassailable strength, but cracks are forming. From purges in the People’s Liberation Army (PLA) to Microsoft’s reckless oversight of Pentagon systems, the chaos within China’s borders is spilling onto the global stage. Add to that Beijing’s aggressive land grabs in America’s heartland and its unwavering support for Russia’s war in Ukraine, and you’ve got a recipe for a geopolitical storm. Is Xi’s regime unraveling, and if so, will it lash out or collapse inward? For the United States, the stakes couldn’t be higher. This isn’t just about China’s internal drama—it’s about a rival that’s been caught red-handed undermining American security. The question is: will America wake up before it’s too late?

The Purge That Shook Beijing

Let’s start with the military. Since early 2025, whispers of a purge have rippled through the PLA. General Hu Zhong, Xi’s right-hand man and the number-two uniformed officer, hasn’t been seen since March 11. Rumors swirl that he was “suicided” in May at Beijing’s 301 Hospital, the PLA’s main medical facility. True or not, his absence is glaring. Other Xi loyalists have also vanished, replaced or sidelined in what Chang calls a rebellion against the supreme leader. “Xi Jinping is losing control of the People’s Liberation Army,” Chang asserts, pointing to articles in PLA Daily that praise collective leadership—a direct affront to Xi’s cult of personality.

Why the mutiny? Xi’s relentless purges have backfired. Since consolidating power in 2012, he’s ousted countless rivals under the guise of fighting corruption, from military brass to party officials. His unprecedented third term, secured in 2022, blocked promotions for a generation of ambitious leaders, breeding resentment. Now, it seems, his adversaries are striking back, targeting his allies in the military. The irony is rich: Xi, who built his rule on fear, is now its victim. But a cornered autocrat is a dangerous one. If Xi’s grip is slipping, what might he do to prove his strength—especially with the U.S. watching?

Microsoft’s Betrayal and Pentagon Blindness

The chaos isn’t confined to Beijing. A bombshell ProPublica report revealed that Microsoft, a key Pentagon contractor, has been using Chinese engineers to maintain critical U.S. defense systems since the late Obama administration. These engineers, often unsupervised or monitored by underqualified “digital escorts,” had access to sensitive software—software the Chinese Ministry of State Security or PLA could manipulate. Worse, Microsoft ignored repeated warnings from its own employees and consultants. The Pentagon, for its part, was blissfully oblivious, a failure Chang calls “gross negligence.”

This isn’t just a bureaucratic snafu—it’s a national security disaster. Imagine Chinese operatives, embedded in Microsoft’s workforce, with their fingers on the Pentagon’s digital pulse. The potential for sabotage, espionage, or worse is staggering. And yet, Microsoft’s negligence went unchecked, a stark reminder of how corporate greed and government complacency can leave America vulnerable. Chang’s call for record-breaking fines and Pentagon firings feels like the least we should demand. How could the U.S. let its guard down so spectacularly against a rival that’s openly declared its intent to challenge American dominance?

China’s Land Grabs and Biological Threats

The threat doesn’t stop at software. China’s been quietly buying up American farmland, a trend Chang has tracked for years. In June 2025, three Chinese nationals were charged with attempting to smuggle biological agents into the U.S.—a fungus designed to devastate crops, livestock, and even humans. This wasn’t a one-off. Since 2020, Americans across all 50 states have received unsolicited seeds from China, part of what Chang describes as a “coordinated attack” on U.S. agriculture. Online retailer Temu was caught smuggling seeds and unidentified liquids as recently as this year. The goal? To plant invasive species that could cripple America’s food supply.

This is straight out of a Cold War playbook, updated for the 21st century. China’s land purchases—often near military bases—raise red flags about espionage and strategic positioning. The biological agents suggest something even darker: a willingness to wage unconventional warfare on American soil. If China’s leadership is fracturing, as Chang suggests, these provocations could be the work of hardliners desperate to flex their muscle. The question isn’t just why they’re doing this—it’s how much further they’re willing to go.

South Korea: A U.S. Ally at Risk

Across the Pacific, China’s shadow looms over South Korea, a critical U.S. ally. On June 3, 2025, a snap presidential election brought leftist Yoon Jea-mun to power amid allegations of fraud. Yoon’s administration is openly anti-American, packing its ranks with pro-North Korea and pro-China figures. Chang warns that Yoon aims to terminate the U.S.-South Korea alliance, expel American troops, and align Seoul with Beijing and Pyongyang. While half of South Korea’s public is protesting in the streets, Yoon’s ruthless determination sets him apart from past leftist leaders.

This is a nightmare scenario for the U.S. South Korea hosts 28,500 American troops and is a linchpin in countering China’s ambitions in the Indo-Pacific. A pro-China Seoul would tilt the regional balance, giving Beijing a freer hand to intimidate Japan, Taiwan, and beyond. China’s influence over Yoon’s government isn’t just a diplomatic win—it’s a strategic coup. With Xi’s regime doubling down on its alliance with Russia, as evidenced by Foreign Minister Wang Yi’s July 2 declaration that China “cannot afford for Russia to lose” in Ukraine, the stakes in East Asia are skyrocketing. Can the U.S. afford to lose South Korea to China’s orbit?

Xi’s Russia Gambit and Global Ambitions

Wang Yi’s statement to the EU’s foreign policy chief wasn’t just rhetoric—it was a window into China’s global strategy. By tying its fate to Russia’s war in Ukraine, Beijing is betting that a prolonged conflict will drain U.S. resources, leaving China unchecked in the Indo-Pacific. This aligns with Xi’s broader vision: a revival of global communism, with China at the helm. His support for Russia, from dual-use technologies to economic aid, has kept Putin’s war machine running despite Western sanctions. But the defector’s leak of a secret CCP plan to exploit a Russian defeat—either by propping up a communist regime or carving out an eastern Russian state—reveals the limits of this partnership. Xi and Putin need each other, but they don’t trust each other.

This mistrust mirrors the chaos within China itself. Xi’s hardline policies have alienated moderates, and his third term has sparked a backlash among party elites. If he falls, Chang warns, the hardliners waiting in the wings could take an even tougher stance against the U.S., especially with Donald Trump back in office. Trump’s aggressive posture toward China—think tariffs, sanctions, and a bolstered military presence in Asia—could provoke a cornered CCP into risky escalation. Will Beijing double down on its anti-American rhetoric, or will internal strife force a rare moment of restraint?

America’s Moment of Reckoning

The Trump administration, sworn in on January 20, 2025, faces a daunting challenge. China’s internal turmoil could make it more unpredictable, not less. A weakened Xi might lash out to shore up his legitimacy, perhaps by escalating tensions over Taiwan or doubling down on covert operations in the U.S. The Microsoft scandal, the farmland grabs, and the biological threats are wake-up calls: China’s already waging a shadow war on American soil. Add to that the risk of losing South Korea and the strain of supporting Ukraine against a China-backed Russia, and the U.S. is stretched thin.

Yet, there’s opportunity in this chaos. A fracturing CCP could give the U.S. leverage to exploit divisions in Beijing, perhaps by engaging moderates or pressuring hardliners through economic and diplomatic means. Trump’s team must act decisively—cracking down on Microsoft’s negligence, securing American agriculture, and shoring up alliances like South Korea. The alternative is grim: a China that, even in disarray, can still inflict serious damage.

A World Watching, a Nation Tested

Xi Jinping’s troubles are America’s warning. A regime fighting for its survival is capable of anything—whether it’s sabotaging Pentagon systems, poisoning U.S. farmland, or propping up Putin’s war. The signs are clear: China’s not just a rival; it’s a threat that’s already inside the gates. The U.S. must respond with the urgency this moment demands, from punishing corporate negligence to rallying allies against Beijing’s ambitions. If Xi falls, what comes next could be even worse—a hardline CCP unbound by restraint, ready to take on Trump’s America head-on.

As Gordon Chang puts it, “We’re under assault.” The question isn’t whether China’s unraveling—it’s whether America will rise to meet the challenge before it’s too late. Will we seize this moment to confront a faltering foe, or will we let complacency hand Beijing the upper hand? The clock is ticking, and the world is watching.

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About Ovidiu Drobotă

Life-long learner.