China Blocks "High-Level Hooligan" US Consultants Amid "Spying Concerns"

Tyler Durden's picture


It appears the tit-for-tat cyber-spying debacle between China and the US is escalating (unless it's all curious coincidence). Having blasted the US as a "mincing rascal" and "high-level hooligan" in the Chinese (state-run) media, The FT reports that authorities have ordered state-owned enterprises to cut ties with US consulting companies such as McKinsey and Boston Consulting Group because of fears they are spying on behalf of the US government. Furthermore, the crackdown is worse as, in the face of the "US hacker empire," China’s leaders announced on Thursday that all foreign IT products and services sold in China would be subject to a new security screening process. So it seems China has entered both the currency war (CNY weakness) and protectionism racket... now how has that ended for the world in the past?


As The FT reports, China has ordered state-owned enterprises to cut ties with US consulting companies such as McKinsey and Boston Consulting Group because of fears they are spying on behalf of the US government, according to people close to senior Chinese leaders.

The instruction comes days after the US Justice Department indicted five People’s Liberation Army officers on charges of cyber-espionage and stealing trade secrets from US corporations including Alcoa, US Steel and Westinghouse.




Beijing’s response to the indictments was swift, with a propaganda campaign in Chinese state media describing the US as a “mincing rascal” and “high-level hooligan”. The decision to ban state enterprises from working with western consulting companies marks a further escalation in Beijing’s response.


Management consultancies including McKinsey, BCG, Bain & Company and Strategy&, formerly known as Booz & Co, have extensive operations in China, which remains a rapidly growing market for them.




In the face of US accusations over cyber attacks and industrial espionage, Chinese officials say their country’s ministries, companies, universities and telecoms networks are under constant attack from the “US hacker empire”.

Furthermore, partial protectionism appears to be looming...

The top leadership has proposed setting up a team of Chinese domestic consultants who are particularly focused on information systems in order to seize back this power from the foreign companies,” said a senior policy adviser to the Chinese leadership. “Right now the foreigners use their consulting companies to find out everything they want about our state companies.”


China’s leaders announced on Thursday that all foreign IT products and services sold in China would be subject to a new security screening process. Any company, product or service that fails the test will be banned from China.


The vetting will focus on products and services used in communications, finance, energy and any other industries the government considers related to national security or “public interest”, officials said.




“Under President Xi Jinping, technology and implementation will look to be converging, so foreign tech firms should be very worried about their prospects.”

The last time the world's largest trading partners devolved into a pissing match over competitively devalued currencies and protectionism... didn't end too well - but this time is different because central banks print magic money to fix everything.

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Mon, 05/26/2014 - 11:05 | 4795385 intric8
intric8's picture

Fook yuen your u.s. company, you leave china now

Mon, 05/26/2014 - 11:17 | 4795417 MillionDollarBonus_
MillionDollarBonus_'s picture

Both the US and Chinese governments are hopelessly behind in the race to protect government technology from hackers and spies. Governments around the world need to seriously rethink their approach to cyber-terrorism before people much smarter than them unleash chaos on the global economy. Cryptocurrencies need to be banned at a global level as an initial measure. The next step is monitor all communication protocols including emails, facebook posts and text messages and ensure that messages flagged as terror threats are sent straight to the NSA.

Mon, 05/26/2014 - 11:39 | 4795484 BeetleBailey
BeetleBailey's picture

in addition, they need you to SCRUB THE LATRINES, YOU USELESS SHILL OF CUNT....NOW GET TO IT MAGGOT!!!!!!!!

Mon, 05/26/2014 - 12:55 | 4795689 TheReplacement
TheReplacement's picture

I haven't been around half as long as you and even I realize MDB's posts are all just over-the-top sarc.

Mon, 05/26/2014 - 13:11 | 4795736 DeadFred
DeadFred's picture

Officially sanctioned or just tolerated is the big question.

Mon, 05/26/2014 - 15:55 | 4796274 BeetleBailey
BeetleBailey's picture

Yeah...well goodie for you. My retorts are for the MAGGOT that takes the time to write such asinine shit.

Mon, 05/26/2014 - 11:58 | 4795523 PT
PT's picture

Not my fault Mr Bonus.  I coulda helped protect my gubmint from hackers but they didn't want me to be that smart.  To avoid pathetic, long rambling story I'll just cut to the chase:  Gubmints too tight and too lazy and can't protect themselves from hackers deserve whatever they cop.  Actually, I don't believe they can't protect themselves.  I believe they just love blaming "hackers" for all sorts of crap as a means to their own nefarious ends.

Governments can't protect themselves from hackers because they choose to be stupid. 

Mon, 05/26/2014 - 11:59 | 4795530 Canary Paint
Canary Paint's picture

Is this one of those posts where the sarcasm is lost in a digital format?

Mon, 05/26/2014 - 12:17 | 4795579 PT
PT's picture

Hard to tell.  So far 12 people think he's serious and 5 think he's satire.
Personally, I think MDB has been held hostage and his only hope of breaking free ( or avoiding some hideous form of blackmail ) is to post his nonsense, and then he posts stuff that is totally over the top in the hope that everyone realizes he doesn't mean it.  What other explanation could there possibly be?

Mon, 05/26/2014 - 13:40 | 4795836 NickVegas
NickVegas's picture

I think MDB's post should be on the best of the Hedge. It's so baffling, no one can really be sure as to the intended meaning. It forces one to think, and question, and serves as a fine grained filter for ideas. Either he has totally freed himself, or he is totally captured, and that is the dramatic tension of the prose.

Mon, 05/26/2014 - 12:02 | 4795539 ebworthen
ebworthen's picture

Yes, and every paycheck direct deposited to a J.P. Morgan Chase or Wells Fargo account.

Then the I.R.S. can just take out the taxes you owe based on deposits.

Get rid of those damn coins and bills too, only drug dealers use them.

Cameras in every home for safety and to ensure accountability.

RFID tags to find anyone that's lost, too.

Mon, 05/26/2014 - 13:18 | 4795766 Luckhasit
Luckhasit's picture

Who is up voting this crap! 

Mon, 05/26/2014 - 17:04 | 4796416 zerozulu
zerozulu's picture

I mean, there must be some one really really genius working behind the scene who united China and Russia.

Mon, 05/26/2014 - 18:09 | 4796515 Seeing Red
Seeing Red's picture

We who love sarc!  One of MDB_'s better posts, but I miss MDB.

p.s.  NickVegas' post above is priceless (+1).

Mon, 05/26/2014 - 11:20 | 4795426 Bananamerican
Bananamerican's picture

"blasted the US as a "mincing rascal" and "high-level hooligan"

I frickin love it when the Chinese talk trash....
Where's that "citizenism" guy....I need another dose!

Mon, 05/26/2014 - 15:38 | 4796230 post turtle saver
post turtle saver's picture

I miss terms like "imperialist running-dog" but then I'm old school...

given how things are going in Russia and India lately, I'm hoping "social imperialists" and "Indian reactionaries" come back into use... I wanna party like it's 1959...



Mon, 05/26/2014 - 18:35 | 4796594 Seeing Red
Seeing Red's picture

Saracen pig!  Spartan dog!  Roman cow!  Russian snake!  SPANISH FLY!!!

(These angry insults brought to you by "What's Up, Tiger Lily?")

Mon, 05/26/2014 - 11:06 | 4795387 Mentalic
Mentalic's picture

Game of ping pong begins !!!

Mon, 05/26/2014 - 12:00 | 4795536 old naughty
old naughty's picture

Game of ping pong...nah.

that popular sport got China to have a population first in the world.

Mon, 05/26/2014 - 11:07 | 4795388 PT
PT's picture

But, but but ... Globalisation will make the world more peaceful!!!  My MSM propaganda machine told me so.  Several times.

No way would you outsource all your manufacturing to a foreign country and then piss them off.  Who would be so dumb? ... 

Mon, 05/26/2014 - 11:31 | 4795448 Bananamerican
Bananamerican's picture

Spending like drunken sailors,off shoring jobs and manufacturers, importing 3rd world "citizen slaves" by the millions, pissing off Europe, Asia the M.E.

I always picture shadowy, satanic, "mincing hooligans" smirking round a table in Brussels..."see what we've done to the worlds only "Hyperpower"?"

Mon, 05/26/2014 - 11:42 | 4795490 PT
PT's picture

It's almost like someone, somewhere, said to themselves, "I don't want the yanks to be successful any more.  Let's deliberately destroy them." 

Mon, 05/26/2014 - 13:09 | 4795725 Zwelgje
Zwelgje's picture

Or: "I don't want the yanks to be successful any more.  Let's put them on their own and see what happens." Who knows if and for how long the USA has been going auto-pilot. Know what I mean?

Mon, 05/26/2014 - 13:11 | 4795734 Pie rre
Pie rre's picture

I hear there's a meeting in Copenhagen this week for the top 200.

Mon, 05/26/2014 - 11:07 | 4795390 Aknownymouse
Aknownymouse's picture

Ok. Now that explains VIX going single digits tomorrow morning.

Mon, 05/26/2014 - 11:08 | 4795392 Flagit
Flagit's picture

Well, given the day and the title, I can not think of a more appropriate song.

EV-ry body want a piece of the action,

Mon, 05/26/2014 - 11:16 | 4795415 PT
PT's picture

Video not available in my country.  What was all that stuff about "free, uncensored" internet again?
A bit like the other day when I tried to find an article on my laptop after reading it on my phone.  I thought I could just google the headline.  Nope.  For some reason it wasn't there.  Had to type in the whole address into the address bar.  Maybe not enough people had read the article at that stage for it to register.

Mon, 05/26/2014 - 11:26 | 4795443 mijev
mijev's picture

I tried to look up an article I'd previously read which trashed the IPCC/global warming and had to scroll through seven pages on google to find it again. it appears that the powers that be are paying to promote more politcially acceptable articles to the top of the lst.

Mon, 05/26/2014 - 11:33 | 4795466 PT
PT's picture

Time to build our own search engines.

and our own computers.

and our own internet.

Hmmm, may take a little longer than I'd like.

Mon, 05/26/2014 - 11:53 | 4795513 Antifaschistische
Antifaschistische's picture

How about "time to build our own database" and stop giving Oracle a back door into our organizations for "support".        Out of Memory ORA-27102

Mon, 05/26/2014 - 12:00 | 4795534 PT
PT's picture

I stand by my comment.  But your idea is good too.

Mon, 05/26/2014 - 11:40 | 4795479 Flagit
Flagit's picture

Fer fucks sake. What a wonderfuld world.

The video was Hooligan's Holiday, by Motley Crue.


Mon, 05/26/2014 - 12:06 | 4795563 PT
PT's picture

Thanks.  Very much appreciated.

Not that I was interested in listening to the song, but it was the principle that mattered.  Motley Crue have one or two good songs, so maybe I should have a listen.

Mon, 05/26/2014 - 13:24 | 4795790 Ban KKiller
Ban KKiller's picture

It is ok to say it....Motley  Crue suck. Always have. 

Mon, 05/26/2014 - 11:09 | 4795393 Kirk2NCC1701
Kirk2NCC1701's picture

LOL... If it's American SW or HW, you might as well make the working assumption that it has a "intel inside" (that you pay for), just like it says on the box.  It's there to harvest "intel" on you.

Mon, 05/26/2014 - 11:35 | 4795395 JustObserving
JustObserving's picture
Blocks "High-Level Hooligan" US Consultants Amid "Spying Concerns"

How can that be?  Can you find NSA in Consultants?

Germany can hire US Consultants to prove that NSA spying on Merkel since 2002 has been beneficial for Germany as are chlorine-washed chickens.

Bullish for US GDP

Mon, 05/26/2014 - 11:09 | 4795398 williambanzai7
williambanzai7's picture

RIP Cisco

Mon, 05/26/2014 - 11:33 | 4795468 Bananamerican
Bananamerican's picture

And Costco...
And Sears, JC Pennies, Kmart, Walmart Best Buy et al

Mon, 05/26/2014 - 13:48 | 4795869 NickVegas
NickVegas's picture

Where is the US strong? Hmmmm, high tech. How do we destroy it? You can't, it's highly coveted, adaptive, and diverse. How do parasites thrive? The use a host as a vector to infect new hosts. Would a poison pill in each package work? It would force the targets to turn away from that source. I have an idea, whisper, mumble, whisper.

Mon, 05/26/2014 - 11:11 | 4795404 PT
PT's picture

I wonder if the "new security screening process" has a gold coin operated by-pass switch.
I got no idea.  Just wondering ... 

Mon, 05/26/2014 - 11:12 | 4795406 holdbuysell
holdbuysell's picture

When do they kick out the Western banks?

Mon, 05/26/2014 - 11:16 | 4795414 I am Jobe
I am Jobe's picture

when will they kick out








and many more? 

Amerikans will starve for the Black Friday Sale , towes and Crock Pots which is the treasures they seek. First World Problem 

Mon, 05/26/2014 - 11:27 | 4795450 Spastica Rex
Spastica Rex's picture

Don't the Chinese make most of that stuff?

Wouldn't that mean kicking themselves out?

Mon, 05/26/2014 - 11:37 | 4795476 PT
PT's picture

Naah, just means they'd have to sell that stuff to the people who made it.  Decisions, decisions ...


When the richest 300 million Chinese are richer than the US, WATCH OUT!  

Mon, 05/26/2014 - 11:12 | 4795409 nmewn
nmewn's picture


You mean like Microsoft not standing behind XP or the NSA dropping malware in everything rolling off the line?

Mon, 05/26/2014 - 11:15 | 4795413 damicol
damicol's picture

Well you cannot fault the Chinese on facts..

 describing the US as a “mincing rascal” and “high-level hooligan”.


They certainly have got the Obummer monkey down to a tee.

Who could posibly argue with them. Perhaps they have pictures too of him getting blown by his fat rent boys

Mon, 05/26/2014 - 11:17 | 4795418 q99x2
q99x2's picture

Yep, Business with Russia is a lot more profitable. First you lock out tech. Jamie Dimon, and then you break all copyright and patent laws. Pure profit on drugs, tech and finance. And Jamie Dimon Blankfein, the Queen of Netherlands and Queen of England and the Western oligarchs get the big FU Goldman Sachs.

Mon, 05/26/2014 - 11:19 | 4795421 dsty
dsty's picture

continual escalation, preperation for war eventualy after economic chaos?

Mon, 05/26/2014 - 11:25 | 4795437 PT
PT's picture

No more flatscreen 3D TVs for you Mr Yankeeman.  Unless you can pick it up from the factory gates.


Mon, 05/26/2014 - 11:23 | 4795432 The Blank Stare
The Blank Stare's picture

I got a funny feeling in my left big toe that Putin is puttin on his game hat and has just moved his queen into position, or, I have Gout.

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