Cape News

U.S. Senators Josh Hawley (R-Mo.) and Marco Rubio (R-Fla.) have sent a letter to Bob Sternfels, Global Managing Partner of McKinsey & Company, urging the firm to sever its ties with the Chinese Communist Party (CCP). This action follows Senator Hawley's introduction of legislation aimed at prohibiting federal agencies from working with consulting firms that have contracts with the Chinese government or its affiliates. The bill, known as the Time to Choose Act, recently passed the Senate Homeland Security and Governmental Affairs Committee (HSGAC) with bipartisan support. Co-sponsors include HSGAC Chairman Gary Peters (D-Mich.), Senator Rick Scott (R-Fla.), and Senator Rubio.

In their letter, the senators wrote: “Your company’s inability to come clean about its dealings with the PRC disqualifies it from future work with the United States government.” They added, “We will continue to work to ensure McKinsey does not receive another dollar from the U.S. government until such time as the company owns up to its work on behalf of the Chinese government, severs all ties to the PRC, and commits to patriotic service on behalf of the United States of America.”

This correspondence follows Mr. Sternfels' testimony in February where he stated under oath that McKinsey had no ties with China. However, subsequent reports revealed that a McKinsey-led project called Urban China Initiative released a book contributing directly to China's Made in China 2025 industrial plan.

The letter highlighted a report by Financial Times which indicated that a McKinsey-led think tank produced recommendations for enhancing China's military and industrial capabilities through technologies such as robotics and autonomous systems. The report also suggested strategies for strengthening China's position in advanced technological fields like cloud computing and artificial intelligence.

McKinsey has claimed that “[t]he Urban China Initiative is not McKinsey, and it did not perform work on McKinsey’s behalf.” Despite this assertion, evidence suggests close connections between McKinsey and the initiative. The think tank was based at McKinsey's Beijing office address, used a domain owned by McKinsey for its website, and directed press inquiries back to McKinsey’s Beijing office.

Further allegations against McKinsey include working for State-Owned Enterprises (SOEs) in China involved in military construction projects and having disclosed commercial relationships with "the Chinese government" in court filings. Additionally, reports indicate that McKinsey held a corporate retreat in Xinjiang Uyghur Autonomous Region amid accusations of genocide against Uyghurs by CCP authorities.

The senators concluded their letter reiterating their stance: “Your company’s inability to come clean about its dealings with the PRC disqualifies it from future work with the United States government—a government your company has worked to undermine both economically and militarily at the behest of our nation’s primary geopolitical adversary.”

They emphasized their commitment: “We will continue to work to ensure McKinsey does not receive another dollar from the U.S. government until such time as the company owns up to its work on behalf of the Chinese government, severs all ties to the PRC, and commits to patriotic service on behalf of the United States of America.”

Sincerely,

Josh Hawley               Marco Rubio

United States Senator     United States Senator