Prominent Biglaw firms are rapidly reducing their presence in China, while others reconsider their lobbying relationships with Chinese companies due to increased government scrutiny. The catalyst for this massive transition appears to be the Defense Department’s recent unveiling of a Section 1260H list of “Chinese military companies” operating directly or indirectly in the United States. This has driven Biglaw firms to sever ties with several of the Chinese firms listed.
According to a report by the National Law Journal, prominent Biglaw firms Brownstein Hyatt, Akin Gump, and Steptoe are among those who have chosen to cut ties with these companies.
- Brownstein Hyatt Farber Schreck terminated its relationship with Chinese lidar-maker Hesai Group at the end of February, having earned $70,000 for their work since the start of the year.
- Akin Gump Strauss Hauer & Feld parted ways with Hesai in February having also started working for them last August. The firm reported earning $60,000 for its work at the start of this year.
- Akin also terminated its relationship with Beijing Xiaomi Mobile Software Co. in mid-February, but did not report any income for this quarter.
- Steptoe terminated its relationship with BGI Shenzhen Co. in mid-February after earning $100,000 for its work for the Chinese biotech company since the beginning of this year.
In a client memo, Akin Gump stated, “We expect companies to undertake closer scrutiny of entities on the Section 1260H List given the reputational considerations associated with such a listing.”
The trend poses a question: which Biglaw firm will be the next to say goodbye to its offices in China or its lobbying relationship with Chinese companies?
Find more details at the National Law Journal.