China Tells State-Owned Companies to Cut Ties with US Consulting Firms
Bianca Ortega | | May 26, 2014 01:52 AM EDT |
China has told state-owned companies to cut its links to American consulting firms on the heels of the US cyber espionage charges against five Chinese army officers.
According to a Financial Times (FT) report cited by Reuters, this latest action by China fears that companies such as The Boston Consulting Group (BCG) and McKinsey & Company are supplying trade secrets to the US.
Like Us on Facebook
In an email, Strategy& Company spokeswoman Margaret Kashmir denied receiving a notification like this and added that they are still serving their clients in China. Bain & Company spokeswoman Cheryl Krauss also said they were not aware of the reported government mandate.
McKinsey and BCG have yet to comment on the news about the said mandate.
FT said both companies have businesses in China and that some of their clients are Chinese state-owned enterprises.
This week, China warned Washington of retaliation if the latter continued with its charges that the five Chinese military officers hacked into American nuclear, solar, and metal companies. Alcoa Inc, United States Steel Corp, Westinghouse Electric Co, SolarWorld AG, and Allegheny Technologies Inc were among the firms that were allegedly hacked.
Cyber espionage has been one of the top national security concerns of Washington for many years.
The five Chinese officers were indicted by the US on May 19. This marked the first time that the US filed a criminal hacking charge against foreign officials.
After the charges were filed, Chinese authorities accused the US government of having "double standards" on cyber espionage. Chinese media firms called the US a "high-level hooligan" in relation to the cyber spying issues.
Meanwhile, China announced that it would take a closer look at IT products and services provider to protect national security and the country's "economic and social development." Furthermore, the Asian nation has banned Microsoft Corp's most recent operating system Windows 8 from computers in central government offices.
©2015 Chinatopix All rights reserved. Do not reproduce without permission
EDITOR'S PICKS
-
Did the Trump administration just announce plans for a trade war with ‘hostile’ China and Russia?
-
US Senate passes Taiwan travel bill slammed by China
-
As Yan Sihong’s family grieves, here are other Chinese students who went missing abroad. Some have never been found
-
Beijing blasts Western critics who ‘smear China’ with the term sharp power
-
China Envoy Seeks to Defuse Tensions With U.S. as a Trade War Brews
-
Singapore's Deputy PM Provides Bitcoin Vote of Confidence Amid China's Blanket Bans
-
China warns investors over risks in overseas virtual currency trading
-
Chinese government most trustworthy: survey
-
Kashima Antlers On Course For Back-To-Back Titles
MOST POPULAR
LATEST NEWS
Zhou Yongkang: China's Former Security Chief Sentenced to Life in Prison
China's former Chief of the Ministry of Public Security, Zhou Yongkang, has been given a life sentence after he was found guilty of abusing his office, bribery and deliberately ... Full Article
TRENDING STORY
-
China Pork Prices Expected to Stabilize As The Supplies Recover
-
Elephone P9000 Smartphone is now on Sale on Amazon India
-
There's a Big Chance Cliffhangers Won't Still Be Resolved When Grey's Anatomy Season 13 Returns
-
Supreme Court Ruled on Samsung vs Apple Dispute for Patent Infringement
-
Microsoft Surface Pro 5 Rumors and Release Date: What is the Latest?