American consulting firms are banned in China

People close to the

China leaders said, China has ordered state-owned enterprises and the McKinsey Consulting Group (McKinsey) and Boston (Boston  Consulting  Group) and other United States consulting firm severed their relationship, worried about the latter on behalf of the U.S. government spying.

includes Bain (Bain  &   Company) and Strategy& (formerly known as Bosch Company; (Booz  &   Co)), the western management consulting firm, has extensive operations in Chinese. For them, China is still a fast-growing market.

"top leaders proposed the establishment of a local Chinese consultant team, by its focus on the information system, in order to regain the strength from the hands of foreign companies." A senior policy adviser to Chinese leadership said, "now, foreigners use their consultants, they want to know everything about the state-owned enterprises."

in the western management consulting firm Chinese customers, private enterprises and multinational companies still occupy a considerable proportion, so the state-owned business is banned will cause some damage, but it isn’t likely to hit them in the Chinese business.