McKinsey web site touted its consulting for Chinese language authorities ministries

Keep knowledgeable with free updates

Merely signal as much as the World Economic system myFT Digest — delivered on to your inbox.

Good morning. We’ve got an unique story right now about McKinsey’s enterprise in China. It raises recent questions over the consulting agency’s denial that it ever labored for Beijing.

McKinsey claimed in advertising supplies that it had suggested the Chinese language central authorities on boosting home consumption and reforming healthcare coverage.

“McKinsey’s impression in China goes properly past our work within the company sector,” it mentioned, based on an archived copy of an internet site, mckinseychina.com, which was shut down in 2019 however now redirects to McKinsey’s foremost worldwide website. “Previously decade alone, we’ve served over 20 completely different central, provincial and municipal authorities companies on a variety of financial planning, city redevelopment and social sector points.”

Some US lawmakers are saying McKinsey must be barred from contracting work for the federal authorities due to alleged inconsistencies in its statements about its enterprise in China.

Bob Sternfels, McKinsey’s world managing accomplice, instructed a US Congressional listening to earlier this month that the agency had by no means labored for the Chinese language central authorities.

Requested concerning the advertising claims by the FT this week, the agency mentioned they had been “inaccurate” and that it has by no means labored for Beijing.

Right here’s what else we find out about McKinsey’s enterprise in China.

And right here’s what else I’m conserving tabs on right now:

• Financial information: Australia releases January CPI inflation fee information, whereas the US publishes revised fourth-quarter GDP figures.

• Financial coverage: New Zealand’s central financial institution publicizes its money fee resolution.

• G20: Finance ministers meet in São Paulo, Brazil to organize for the annual presidential summit in November.

• Hong Kong: Monetary secretary Paul Chan Mo-po presents the 2024-25 Finances to the Legislative Council.

5 extra high tales

1. Shein is contemplating London as a back-up choice for a blockbuster flotation if US regulators block the web fast-fashion group’s most well-liked selection of a New York IPO over its ties to China. The Singapore-headquartered group had additionally thought-about Hong Kong, based on one investor within the firm, however had determined in opposition to itemizing within the metropolis, citing its inventory market’s latest poor efficiency. Right here’s extra on Shein’s IPO pursuit.

2. China’s southern know-how hub Shenzhen has rolled out plans for a giant enlargement of automotive exports, a plan that’s prone to gasoline western fears about rising Chinese language competitors for home producers. The technique contains 24 measures aimed toward turning Shenzhen into “a brand new era world-class auto metropolis” and comes as world considerations develop that China’s automotive business has vastly overbuilt home capability and that most of the vehicles rolling off home manufacturing traces will flood into western markets. 

3. Germany’s deputy chancellor mentioned there was “no likelihood” of sending floor troops to Ukraine and, in a rebuff to France, instructed Paris it ought to as a substitute provide Kyiv with extra weapons. Robert Habeck rejected French President Emmanuel Macron’s suggestion {that a} troop deployment to Ukraine shouldn’t be dominated out, as Nato leaders additionally rounded on the thought.

• Associated: Europe should curb welfare spending and tax cuts to discourage a “extra aggressive Russia” with extended defence and safety funding will increase, Denmark’s prime minister instructed the FT.

4. Apple has cancelled its efforts to construct an electrical automotive because it pivots to focus analysis funding on generative synthetic intelligence, based on an individual acquainted with the matter. The cancellation of the secretive decade-long effort comes because the EV business has slowed in latest months and as Apple prepares to announce extra particulars of its work within the fast-growing generative AI sector.

5. Ecommerce large Amazon’s lobbyists are to be banned from the European parliament as a part of an escalating dispute over transparency and dealing situations. The European parliament mentioned the corporate had repeatedly refused to have interaction with it about its strategy to employees’ rights and labour situations. It is just the second time that an organization’s lobbyists have been banned from getting into the European parliament.

Information in-depth

India’s arms business handed a milestone in January when it unveiled the nation’s first intelligence drone. The Drishti-10 Starliner was made by the defence arm of the Adani conglomerate in a three way partnership with Israeli navy producer Elbit. Whereas India stays the world’s greatest arms importer, the brand new drone highlights how Adani and different non-public conglomerates have heeded calls by the federal government of Narendra Modi for extra “indigenisation” of arms manufacturing, usually in partnership with international firms that New Delhi has been urgent to take a position.

We’re additionally studying . . . 

• Media: The demise of a New York Metropolis owl final week revealed two completely different approaches to information within the twenty first century, writes Stephen Bush.

• Chinese language financial system: Beijing must embrace non-public firms as a part of the answer to what ails the Chinese language financial system — not a part of the issue, writes Diana Choyleva of Enodo Economics.

• Books: What’s the key of a bestseller? Reasonably than algorithms, there’s nothing extra highly effective than a reader who really loves a guide, writes Nilanjana Roy.

Chart of the day

Morgan Stanley, UBS and Financial institution of America have a few of the greatest gender pay gaps in Australia, based on a authorities survey, greater than twice as excessive as the typical of 19 per cent.

Take a break from the information

. . . and take a look at cocktail maestro Ryan ‘Mr Lyan’ Chetiyawardana’s 13 favorite bars all over the world, together with a Hong Kong tea home and a Melbourne cottage recognized for Guinness and milk punch.

Extra contributions from Irwin Cruz and Gordon Smith