Source: Global Times    Published: 2021-11-14

Recent allegations raised by US media and politicians against US-based consulting giant McKinsey & Co over its businesses with Chinese state-owned enterprises (SOEs) could pose more challenges for an already tough environment for cooperation between Chinese and US businesses, Chinese experts said on Sunday.

A report from the US' NBC News released on Saturday said that McKinsey's consulting contracts with both the US Department of Defense and Chinese SOEs pose a potential risk to US national security, citing US lawmakers and critics.

The report said that though there is no evidence or allegation that McKinsey has damaged US national security, its work with Chinese SOEs could allow China to have access to valuable information associated with US government agencies, and the company needs to divulge more details about its work in China.

Asked about its work in China and the US, McKinsey told NBC that it abides by US laws on federal contracting and it has extensive internal rules to prevent conflicts of interest and to protect clients' information.

The company didn't respond to a Global Times request for further comments as of press time on Sunday.

While information about specific operations of McKinsey in the Chinese market remains limited, increasing political scrutiny on businesses between Chinese and US firms could disrupt normal operations that already face tough situations amid tense bilateral relations, analysts said.

Such scrutiny also shows that the US is losing strength and confidence in business dealings with China, Mei Xinyu, a research fellow at the Chinese Academy of International Trade and Economic Cooperation of China's Ministry of Commerce, told the Global Times on Sunday.

"Speaking about information leaks, China should be the one to worry that McKinsey may leak information of China's SOEs to the government in the US, where the company was founded," he said.

Founded in 1926 in Chicago, McKinsey has more than 30,000 workers in 133 cities in 67 countries and regions, according to the company's website.

How is it that a US consulting company that serves both Chinese and US clients is only causing one-way damage to the interests of one party, a senior research fellow surnamed Dong at the Chongyang Institute for Financial Studies at Renmin University of China told the Global Times on Sunday.

"Before promoting conspiracy theories, some media and politicians should come up with solid evidence. Otherwise, accusations that are based on association and not on proven evidence are of little significance," Dong said.

Even amid high tensions between China and the US, global consulting companies like McKinsey have been expanding in China in recent years.

McKinsey has more than 1,000 employees in China to serve privately owned firms, SOEs and multinational companies with offices in many Chinese cities such as Beijing, Shanghai and Shenzhen.

Despite the US' unilateral actions and crackdowns, China has continued to open up its domestic market for global businesses, including those from the US, analysts noted.

"If you want to improve your safety, you can't just shut the door. You need to improve your strength," Mei said.

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