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Lord Peter Mandelson will nonetheless maintain shares within the lobbying agency he co-founded as he takes up his new submit because the UK’s ambassador in Washington, regardless of the corporate’s work for Chinese language shoppers comparable to TikTok and hyperlinks to a distinguished ex-adviser to Barack Obama.
Mandelson is predicted to promote his stake in World Counsel over time however has not set a deadline for absolutely divesting, based on individuals aware of the matter. He is because of begin subsequent month as Britain’s emissary to President Donald Trump.
One of many individuals stated Mandelson was anticipated to place the shares, value hundreds of thousands of kilos, in a “blind belief” to make sure compliance with UK authorities guidelines till they’re bought off.
The previous New Labour veteran, whom UK Prime Minister Sir Keir Starmer chosen over profession diplomats, was the second-largest shareholder in World Counsel with a 28 per cent stake as of June 2024, based on filings at UK Corporations Home. The individuals stated his stake was smaller now.
The agency was valued at £30mn final 12 months when The Messina Group, the political consultancy based by former Obama marketing campaign supervisor Jim Messina, purchased a 20 per cent stake.
Nicknamed “the Prince of Darkness” for his capability as a political operator, Mandelson was a controversial choose for the ambassador job.
He had beforehand known as Trump a “hazard to the world” and “little in need of a white nationalist”. One in every of Trump’s high marketing campaign strategists called Mandelson “an absolute moron” when his appointment was introduced final month.
The 71-year-old was a minister in Sir Tony Blair’s New Labour authorities however needed to resign twice. He additionally served underneath Gordon Brown. Mandelson co-founded World Counsel in 2010 and later served as president of the Nice Britain-China Centre, an arm of the UK International Workplace. Prior to now he has inspired western governments to be pragmatic in coping with China.
In a Fox News article final week, Mandelson praised Trump’s “nice ability” as a campaigner and stated Beijing “now immediately challenges western governments and our values”.
Individuals aware of the matter stated Mandelson’s stake in World Counsel had declined to about 20 per cent prior to now few months. The agency’s shoppers have included corporations comparable to Anglo American, JPMorgan, OpenAI, Palantir and Sequoia — but in addition a number of China-linked corporations.
World Counsel lobbied for TikTok within the UK between July and September final 12 months, based on the British lobbying regulator. TikTok stays a shopper, based on an individual aware of World Counsel’s work.
The US has legislated to ban TikTok until its proprietor ByteDance divests the corporate due to fears the app might be wielded by Beijing for espionage or to unfold propaganda. TikTok has denied that it’s underneath the affect of the Chinese language authorities. Trump has stated he’s seeking to enable TikTok to remain available to US users.
World Counsel till final 12 months additionally suggested fast-fashion group Shein, which was based in China however is now based mostly in Singapore, based on the individual aware of the agency’s work.
Shein, which has been exploring a flotation within the UK, has faced allegations that minority Uyghur persons are getting used as compelled labour in cotton provide chains in China’s Xinjiang area, a few of which has made its approach into Shein merchandise. The corporate insists it complies with all legal guidelines and laws of the nations by which it operates.
Mandelson in 2021 was the one Labour peer within the Home of Lords to vote towards an modification aimed toward calling out alleged genocide in Xinjiang province. He later informed colleagues that having a “basic genocide definition within the formulation of international coverage” might be too sweeping and depart the federal government with its palms tied.
World Counsel in 2020 additionally supplied recommendation to Canyon Bridge, the individual aware of the agency’s work stated. Canyon Bridge is a US-based enterprise firm backed by Chinese language funds together with China Reform Holdings, a Chinese language state-owned enterprise fund. Its portfolio contains British graphics chipmaker Creativeness Applied sciences.
In 2020 Canyon Bridge tried to nominate 4 China Reform-linked administrators to Creativeness’s board however deserted the transfer after an intervention by the UK authorities, the Monetary Instances previously reported.
World Counsel made a lack of £1.85mn in 2023. Mandelson stepped down as a director within the wake of the cope with Messina however grew to become president and chair of World Counsel’s worldwide advisory board.
Mandelson and World Counsel declined to remark. Requested about Mandelson’s hyperlinks with China, Starmer’s spokesman stated: “We’re assured that when President Trump involves overview his credentials he’ll come to see the appreciable expertise that Lord Mandelson has and why he would make a superb ambassador.”
