China has ordered state-owned enterprises to cut ties with US-based
consulting companies, including McKinsey and the Boston Consulting Group
on fears that they are spying on behalf of the US government, the
Financial Times reports, citing a source close to senior Chinese
leaders.
A source close to an adviser to China's State Council or cabinet that
the rumor was a leader's oral instruction and had not been made
official, according to Shanghai's China Business News. So far,
representatives from several foreign consulting companies have responded
that they have not received such notices and that their companies are
operating normally.
Some analysts are seeing this as China's protest against the US
Justice Department's indictment of five People's Liberation Army
officers on charges of cyber espionage.
An unnamed source from the industry pointed out that foreign
consulting companies had provided professional knowledge to Chinese
enterprises and helped them become more internationalized. The role of
these companies has been indispensable, the source added.
Banning China's state-owned enterprises from working with foreign
consulting companies is part of Beijing's moves aimed at tightening
safety of information, in response to the Edward Snowden incident, in
which the former US government contractor made public numerous documents
related to covert surveillance conducted by the United States.
There are also rumors that Chinese authorities have recently
forbidden the use of the Windows 8 operating system on computers used by
government agencies and that Beijing is calling for local banks to
choose locally developed service providers over IBM's high-end service
products.
None of these measures have been concretely verified, China Business News said.
read more: http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140604000003&cid=1102
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