Consulting giant McKinsey profits off both sides of U.S.-China cold war

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WASHINGTON — Global consulting giant McKinsey & Co.’s work with both the Pentagon and powerful Chinese state-owned enterprises poses a potential risk to national security that federal agencies can no longer ignore, lawmakers and Critics say.

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McKinsey’s consulting contracts with the federal government give it an insider’s view of US military planning, intelligence and high-tech weapons programs. But the firm also advises Chinese state-run enterprises that have supported Beijing’s naval build-up in the Pacific and played a key role in China’s efforts to expand its influence around the world, according to an Granthshala News investigation.

There is no evidence or allegation that McKinsey caused harm to US national security, and US officials do not accuse the firm of violating federal contract laws related to its work with Chinese clients.


But with high tensions between China and the US, McKinsey’s business operations in both countries are coming under scrutiny. Critics say the firm, the world’s largest consulting firm, needs to reveal more about its work in China, especially because of concerns in Washington about Beijing’s industrial espionage, weapons manufacturing and intellectual property theft. Middle.

In addition to his consultations in China, McKinsey has faced sharp criticism from lawmakers and legal challenges over alleged conflicts of interest in other areas.

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The company agreed to pay $573 million this year to settle allegations from 49 states that its work for opioid makers helped “turbocharge” sales of the drugs, contributing to a deadly addiction epidemic. At the same time the firm was working for drug companies, McKinsey was advising the Food and Drug Administration on its prescription drug policy, according to court documents.

When asked about its work in China and the United States, McKinsey told Granthshala News that it follows US laws on federal contracts and its comprehensive internal rules to prevent conflicts of interest and protect customer information. Huh.

“We follow strict protocols, including staffing restrictions and internal firewalls, to avoid conflicts of interest and protect client confidential information in all of our operations. When serving the public sector, we go beyond: Management of potential staffing conflicts In addition, we are subject to organizational conflicts of interest for our government customers and comply with these obligations accordingly,” said company spokesman, Neil Grace, in an email.

The Pentagon and other federal government agencies rely on McKinsey to do often sensitive work on national security strategy, cybersecurity and cutting-edge technology, paying the firm hundreds of millions of dollars for its advice and data-crunching.

Since 2008, McKinsey has overtaken $851 million worth Consultancy work for the federal government, with the Department of Defense as the top client, generates about a third of the firm’s government revenue.

McKinsey advises senior officials on weapons budgets, the Defense Department’s IT network, and modernization of Navy shipyards. developing technology for the space force and air force and F-35 . evaluation of management fighter jet program,

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