Sunday, March 3, 2024

McKinsey-Led Think Tank Helped Chinese Government Compete With US

Here is more from the Financial Times:

A McKinsey-led think-tank advised China to deepen co-operation between business and the military and push foreign companies out of sensitive industries as part of a project for the central government in 2015.

The recommendations in a book by the Urban China Initiative, commissioned by the Chinese government’s central planning agency, were among dozens of policies it proposed to boost the country’s technological prowess, according to a review of the work, which has not previously been reported in western media.

The UCI’s book — with a foreword by one of McKinsey’s most senior partners in China and drawing on work by McKinsey’s in-house research arm — formed part of the Chinese government’s research for its 13th Five-Year Plan covering 2016-20. The Five-Year Plan included the “Made in China 2025” policy that increased tensions between Beijing and Washington.

McKinsey shut down UCI in 2021 and has played down its relationship with the Chinese government since coming under political pressure in the US, where lawmakers have questioned if consulting in China conflicts with the firm’s work for the US Department of Defense.


In light of the FT reporting, Republican lawmakers are now calling for McKinsey to be banned from securing federal contracts.