How Safe is your data in Azure VM

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We are going to have a new business system and I'm trying to convince my boss to host it on cloud in China cause business is there, ie: Azure, AWS, etc. He has a concern about data confidentiality and he doesn't want the company's financial info to leak out. The software vendor also suggested we build our own data center if we are so concern about data confidentiality. This makes me even more difficult to convince him. He has the impression that anything can be done in China.

I understand that Azure SQL is not an option for me cause host admin still have control even though I implement TDE (cannot use Always Encrypt). Now I'm looking at VM where I have full control over - at VM level up. I can also use disk encryption. Couple that with other security measures like SSL I'm hoping that this will improve the security of the data is it in transit or at rest. Is my understanding correct?

With that said, can the Azure admin still overwrite anything set on VM and take over the VM fully?

Even though it's technically possible but if this takes a lot of effort (benefit < effort) it still worth trying.

Any advice will be much appreciated.

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Azure level Admin can just login to your VM, doesnt matter if its encrypted or not (or decrypt it, for that matter). You cannot really protect yourself from somebody inside your organization doing what he is not supposed to do (you can with to some extent with things like Privileged Identity Management, proper RBAC, etc).

If you are talking about Azure Fabric admin (so the person working for Microsoft or the chinese company in this particular case). He can, obviously pull the hard drive and get access to your data, but its encrypted at rest. Chances are he cannot decrypt it. If you encrypt the VM on top of that with Azure Disk Encryption (or Transparent Data Encryption) using your own set of keys he wouldn't be able to decrypt the data even if he can, somehow, get past the Azure side encryption

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If you want to more control better to have IaaS services than PaaS services. You have more control on IaaS. You can use Bit loker to encrypt your disks if you are using Windows OS. China data center also under industry specific standards. Access to your customer data is controlled by an independent company in China, 21Vianet. Not even Microsoft can access your data without approval and oversight by 21Vianet. I think there is no big risk but you have to implement more security mechanism than Azure provide for better security.