**Republican Lawmakers Demand Investigation into McKinsey’s China Ties**

WASHINGTON (AP) - A trio of Republican lawmakers is calling for a federal investigation into the prominent consulting firm McKinsey & Company over its dealings with the Chinese government and state-owned enterprises. The demand comes amidst reports that McKinsey is restructuring its operations in China to mitigate potential risks.

A letter addressed to the Justice Department and signed by Rep. John Moolenaar of Michigan, Sen. Marco Rubio of Florida, and Sen. Joni Ernst of Iowa questions whether McKinsey’s contracts amounting to $480 million with the Defense Department since 2008 comply with federal regulations. The lawmakers argue McKinsey failed to adequately disclose its advisory role with Chinese national and provincial governments along with state-controlled businesses. “McKinsey's activities pose a serious risk to U.S. national security and may have failed to meet McKinsey's obligations under federal law,” the letter contends.

McKinsey has opted not to comment directly on the letter but has previously defended its practices. The firm insists it adheres to the highest standards in client service policies within the industry. McKinsey has stated that its primary clients in China are multinational companies and private Chinese businesses, rather than the ruling Chinese Communist Party or China’s central government.

The call for scrutiny of McKinsey's Chinese engagements follows growing competitiveness between the U.S. and China. The Biden administration has enacted export controls to limit China’s access to advanced computer technologies and has restricted U.S. investments in critical areas like microelectronics, quantum information technologies, and artificial intelligence. In addition, a recent Republican congressional report highlighted potential risks from collaborations between American and Chinese universities.

Amidst these geopolitical tensions, U.S. firms, including McKinsey, are reevaluating their interactions with China. This week, The Wall Street Journal reported that McKinsey had significantly reduced its workforce in China by about 500 people, equaling nearly a third of its employees there, and cut ties with some government-linked clients.

The letter further accuses McKinsey of expediting China's military and economic advancements by providing consulting services. It specifically claims the company did not disclose its activities with the Chinese government when it secured defense contracts, which may have given McKinsey access to sensitive U.S. national security information. McKinsey’s global managing partner, Bob Sternfels, reiterated to the Senate Homeland Security Committee earlier this year that, to his knowledge, McKinsey had never engaged with the Chinese Communist Party or China’s central authorities. However, the lawmakers' letter, referencing public records and documents, suggests McKinsey may have misrepresented its connections with the Chinese government.