Earlier this year, McKinsey executives found themselves in serious political trouble. The Financial Times reported that their China branch had boasted in 2019 of its economic advice to the Chinese central government, while a McKinsey-led think tank prepared a book which advised China to “deepen cooperation between business and the military and push foreign companies out of sensitive industries.”
McKinsey, which had previously gotten media attention for promoting China’s Belt and Road initiative, responded with a statement saying that China’s central government had never to its knowledge been a client, and stressing its “75 year history of supporting the US government.” But the damage was done: Senior Republican policymakers called for McKinsey to be banned from tens of millions of dollars in federal contracts.
Henry Farrell and Abraham Newman, “Consulting Firms Have Stumbled Into a Geopolitical Minefield,” Foreign Policy, May 22, 2024.