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McKinsey-led think-tank advised China on policy that fed US tensions

Urban China Initiative counselled Beijing on cutting-edge technologies in preparation of Five-Year Plan

A McKinsey-led think-tank advised China to deepen co-operation between business and the military and push foreign companies out of sensitive industries as part of a project for the central government in 2015.

The recommendations in a book by the Urban China Initiative, commissioned by the Chinese government’s central planning agency, were among dozens of policies it proposed to boost the country’s technological prowess, according to a review of the work, which has not previously been reported in western media.

The UCI’s book — with a foreword by one of McKinsey’s most senior partners in China and drawing on work by McKinsey’s in-house research arm — formed part of the Chinese government’s research for its 13th Five-Year Plan covering 2016-20. The Five-Year Plan included the “Made in China 2025” policy that increased tensions between Beijing and Washington.

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