I assume it is OK to say this: Microsoft has a “China” cloud and a non-airgapped “US Government” cloud. It is standard practice that engineers making production touches in the clouds have to be “escorted” by vendors who make sure you’re not doing anything malicious. I assume the article is implying that these vendors for the US Gov cloud may be Chinese nationals.
As Jason mentions in another comment, anything actually requiring clearance is serviced by the airgapped clouds and only folks with clearance are able to operate there.
Edit: misread the article but the third paragraph stands. The government is totally aware of where the operator boundary lies and this is still wildly mischaracterized.