GOP lawmakers seek investigation of consulting firm over its work in China
A group of Republican lawmakers is demanding a federal investigation into the U.S. consulting firm McKinsey over its work with the Chinese government and state-owned enterprises
WASHINGTON — A group of Republican lawmakers is demanding a federal investigation into the U.S. consulting firm McKinsey over its work with the Chinese government and state-owned enterprises, even as the company reportedly is revamping its China business to reduce risks.
A letter — signed by Rep. John Moolenaar of Michigan, Sen. Marco Rubio of Florida and Sen. Joni Ernst of Iowa — asks the Justice Department to investigate whether McKinsey's $480 million contracts with the Defense Department comply with federal law when the consulting firm also advised China's national and provincial governments and state-controlled businesses. The three accuse McKinsey of misrepresenting its relationship with the Chinese government.
“McKinsey's activities pose a serious risk to U.S. national security and may have failed to meet McKinsey's obligations under federal law,” according to the letter dated Thursday.
McKinsey declined to comment on the letter but has in the past defended its practices in China. It has said it follows the “most rigorous and comprehensive client service policy in our industry."
The consultancy also has said it does not work for the ruling Chinese Communist Party or the central government but mainly with multinationals and private Chinese businesses.
The lawmakers' scrutiny over McKinsey's dealings with Beijing comes as the U.S. and China are becoming increasingly competitive, prompting American politicians to reexamine business ties to ensure Beijing and its military would not get stronger with U.S. help. Beijing also has grown wary of
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