Sen. Josh Hawley grilled Homeland Security Director Alejandro Mayorkas about the DHS continuing to employ somebody who praised terrorists.
However, a Financial Times report last week found otherwise. The investigation found that the think tank Urban China Inititative, helmed by McKinsey, recommended strategies to the Chinese regime in 2015, urging closer collaboration between businesses and the military.
"To be clear, this was not just any consulting work. It was the creation of a detailed roadmap for the Chinese government’s long-term scientific and technical development, including plans to blur the lines between civilian and military technological applications," Hawley wrote. "Among other recommendations, the book also advocated undercutting non-Chinese companies through explicitly anticompetitive practices—such as subsidizing domestic internet companies’ bid to 'eventually take control of the industry from foreign firms.'"
McKinsey contributed to China's 13th Five-Year Plan book — and also provided a forward to the book — which has sparked tensions with the U.S. due to policies like Made in China 2025, an initiative to position China as the global powerhouse in high-tech industries.
"Indeed, this McKinsey-led product directly contributed to China’s Made in China 2025 industrial plan, which accelerated Chinese trade abuses and the deterioration of U.S.-China relations," Hawley wrote.
CHINESE MIGRANTS POURING ACROSS SOUTHERN BORDER SPARK NATIONAL SECURITY CONCERNS
The Time to Choose Act aims to address conflicts of interest in federal contracting and prohibits consulting firms like McKinsey & Company from simultaneously contracting with both the U.S. government and entities associated with the People’s Republic of China. (AP Photo/Kiichiro Sato)
If passed, the bill would also enforce penalties on consulting firms found to be intentionally concealing or misrepresenting contracts with Chinese entities.
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In December, McKinsey agreed to pay $78 million to settle claims by U.S. health insurers and benefit plans that its work with drug companies helped fuel an epidemic of opioid addiction.
The agreement was the final of a series of settlements McKinsey reached to resolve lawsuits over the U.S. opioid epidemic. The firm previously paid $641.5 million to resolve claims by state attorneys general and another $230 million to resolve claims by local governments. It has also settled cases brought by Native American tribes.
Fox News Digital reached out to Sternfels for comment.
Fox News' Landon Mion contributed to this report.
Jamie Joseph is a writer who covers politics. She leads Fox News Digital coverage of the Senate.
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