Latest news with #USdefense
Irish Times
7 days ago
- Business
- Irish Times
McKinsey bars China practice from generative AI work amid geopolitical tensions
McKinsey has stopped its China business from undertaking consultancy work related to generative artificial intelligence amid geopolitical tensions, excluding it from one of the most potentially lucrative markets for consultants in the country. The US firm instructed its mainland Chinese operation to refrain from projects deploying generative AI in recent months, according to two people with knowledge of the matter. One of the people said the move was prompted by Washington's growing scrutiny of US companies operating in sensitive sectors such as AI and quantum computing in China. The ban extends to projects in the mainland offices of multinational clients, but does not stop McKinsey's China business from working with companies that have more established forms of AI in their products. One person with knowledge of the matter said the policy could constrain McKinsey's ability to secure new business, given the central role generative AI now plays in corporate strategy and IT systems through products such as chatbots. READ MORE McKinsey has previously come under fire from US lawmakers for working with Chinese state-owned enterprises and local governments while also holding contracts with the US defence department. Bob Sternfels, McKinsey's global managing partner, was questioned by Congress last year over the consulting firm's alleged ties to the Chinese government. Although the US government has not imposed any explicit ban on consultancies advising on AI in China, it has sought to curtail the development of China's AI industry by tightening export controls on advanced chips and limiting American investment in Chinese tech groups. McKinsey's stance is more cautious than that of some of its competitors. A consultant at a rival US firm said they avoided Chinese clients that had been blacklisted by Washington, but continued to undertake AI-related work for others using mainland-based teams. McKinsey's move comes as foreign professional services firms, including law firms, consultancies and investment banks, retrench in China amid geopolitical tensions and a slowing economy. Chinese companies are increasingly turning to cheaper local rivals, while many multinationals are withdrawing from China or greatly reducing their investment in the country. McKinsey has reduced its headcount in mainland China, Hong Kong and Taiwan to about 1,000 from 1,500 in 2023, according to figures on its website. Despite the pullback, McKinsey continues to position itself globally as a leader in AI transformation. The firm has rolled out internal tools, including an AI chatbot, to help consultants automate tasks such as drafting proposals and building presentations. Its AI-focused unit, QuantumBlack, builds and deploys systems based on large language models. Asked about the ban, McKinsey said in a statement: 'Last year, we further strengthened our client service policies in China, where today our work focuses on multinational and Chinese private sector firms.' The firm added: 'We follow the most rigorous client selection policy in our profession, and we continue to evolve and strengthen our approach.' --Copyright The Financial Times Limited 2025
Reuters
22-07-2025
- Business
- Reuters
Lockheed Martin flags $1.6 billion charge in second quarter
July 22 (Reuters) - U.S. defense giant Lockheed Martin said on Tuesday it had recorded pre-tax losses of $1.6 billion predominantly on a classified program at its Aeronautics segment.
News.com.au
13-07-2025
- Business
- News.com.au
Pentagon ‘pressing' Australia on potential Taiwan war role
The Pentagon is pressing Australia and Japan to confirm what roles they would play in a potential war with China over Taiwan, according to reports out of America. US defence official Elbridge Colby has been 'pushing the issue' with Australian and Japanese counterparts in recent months, sources familiar with the discussions told the Financial Times. Mr Colby, the undersecretary of defence for policy, is considered a China hawk and is leading a bombshell review of the $368 billion AUKUS pact. The 'animating theme' of the discussions around Taiwan was 'to intensify and accelerate efforts to strengthen deterrence in a balanced, equitable way', one source claimed. Mr Elbridge took to X after the Times report was published to say the US government was focused on an 'agenda of restoring deterrence and achieving peace through strength'. 'That includes by urging allies to step up their defense spending and other efforts related to our collective defense,' he wrote. The Sydney Morning Herald cited an anonymous 'senior US defence official' to report on Sunday that the Pentagon had asked Australia how AUKUS submarines would be used in US military conflicts. 'There's a conversation about command structure, about alignment of assets. We would want, in any scenario, a clear sense of what we can expect from Australia,' they said, adding it was not just in relation to Taiwan. Australia has been under pressure from the Trump administration to raise defence spending but requests for commitments to war 'caught Tokyo and Canberra by surprise' given the long-standing approach of 'strategic ambiguity' taken by the US over Tawain, the Times reports. Asked about the report on the ABC's Insiders program on Sunday morning, Defence Industry Minister Pat Conroy said 'the sole power' to commit Australia to war rested with the federal government. He told host Patricia Karvelas 'we don't engage in or discuss hypotheticals' when asked if the government had given 'a clear answer behind closed doors'. 'The decision to commit Australian troops to a conflict will be made by the government of the day, not in advance … and that's our position and it's been long established.' United States Studies Centre defence program head Peter Dean said Mr Conroy was 'absolutely right' to push back on Mr Colby's reported demands. 'Colby needs to get his own house in order before he starts making demands of alliance partners. Alliances are also not transactional in this manner and no country should be giving away its sovereignty,' Professor Dean said. 'Any Taiwan scenario is purely hypothetical.' The news came as Prime Minister Anthony Albanese arrived in China's economic capital Shanghai on Sunday to begin a week-long visit. Mr Albanese's trip will include high-level talks with Chinese President Xi Jinping and Premier Li Qiang in Beijing. He told reporters on arrival the Australian delegation 'we will have important meetings about tourism, about decarbonisation of steel, about the full range of issues'. 'We know that one in four of Australia's jobs depends on our exports, and China is our major trading partner, with exports to China being worth more in value than the next four countries combined,' he said. The visit follows strong comments made by Australian Foreign Minister Penny Wong on Friday, in which she said China had chosen to 'wield its strength' in a way that threatened national security. 'China continues to assert its strategic influence and project its military power further into our region,' she said. 'And we have seen the worrying pace of China's nuclear and conventional military build-up, without the transparency that the region expects.'
Fox News
20-05-2025
- Business
- Fox News
Trump admin hits bullseye with first US mine for key mineral used in military ammo, night-vision, Big Tech
EXCLUSIVE: The Trump administration has helped launch the first-ever U.S. mine for a critical mineral largely dominated by China, which controls about half of global production, Fox News Digital has learned. The Idaho operation will extract and smelt antimony – a metalloid that is key to the U.S. defense and technology sectors – and reduce reliance on malign actors like the CCP – from which about half the world's stock is currently produced. Antimony has a myriad of national security uses – including in military tools like night-vision goggles, explosives, flame-retardants, tracers, lasers, nuclear weapons production, military clothing and ammunition. It also plays a role in the bloodless AI arms race, as a component in semiconductors and infrared technology, as well as its use increasing the hardness of alloys like lead and copper. While not technically considered a rare earth element because of its placement on the periodic table, antimony is considered critical and less common than other elements. Interior Secretary Doug Burgum played a leading role in the groundbreaking effort to boost U.S. energy dominance and self-reliance in terms of critical minerals and natural resources. The antimony stibnite mine will be used to mine for gold as well, Fox News Digital has learned. The mine's opening is another example of a critical global supply chain shifting stateside, as Burgum and other officials aim to reduce U.S. reliance on foreign suppliers for national security and economic stability. The National Energy Dominance Council, an executive branch advisory group founded in February by executive order and led by Burgum and Energy Secretary Chris Wright, was a key player in the opening of the mine. Burgum issued the mine's 404 permit – which governs dredging and discharge into American waters -- on Thursday to Boise-based Perpetua Resources. Perpetua President Jon Cherry called the achievement the culmination of eight years of study, refinement and "lots of hard work." "We are immensely proud to achieve this milestone. It's time to move forward and take the Stibnite Gold Project into a new and exciting phase of development," Cherry said in a statement. "We believe this [Trump] administration's commitment to boosting efficiency without compromising rigorous environmental standards can have a transformational impact on American mining," he added. The project will also create 550 jobs and, on the gold front, is primed to produce more than 400,000 ounces of the precious metal annually over the next four years. The antimony stores therein are estimated at 148 million pounds and are the only identified such reserve in the U.S. – and the largest outside China. It is expected to cut foreign reliance on that critical mineral by one-third.
