A wave of departure from China is on the rise among Biglaw firms, with several making a move to consolidate or close down offices in the country. High-profile law firms to have joined the exodus recently include two from the top of the Am Law 100: Sidley and Weil Gotshal, who are shuttering their operations in Shanghai. As per Law.com International, Weil Gotshal had expressed thoughts of shutting down its Shanghai outpost as early as March.
To cope with these shifts, Sidley has moved a few of its legal practitioners, including its two partners based in Shanghai, to its Beijing and Hong Kong offices, according to an inside source at the US law firm. Weil’s Shanghai partner Charles Ching has also made a move to Hong Kong as the firm works towards winding down its office in Shanghai.
Sidley’s representative provided an explanation for the firm’s decision to cease operations in its Shanghai office, which has been operational since as far back as 1999. According to the spokesperson, following a review of office space and attorney requests to relocate or retire, the firm has decided against renewing its Shanghai lease. In September 2024, it plans to consolidate its China operations with relocations to Beijing, Hong Kong, and other Sidley offices in different locations.
Despite these significant shifts, it was clarified that both law firms’ commitment to the China market will be undeterred, and their clients will remain unaffected.
Following this, Sidley will continue to operate out of its Beijing office, and Weil will maintain its presence in Hong Kong. As it stands, the question now is which Biglaw firm will be the next to bid zuìjiàn to its China-based offices.
The reporting throws light on a growing trend of international law firms reevaluating their strategies in China. This development comes amid growing economic uncertainties and a complex interplay of market dynamics and regulatory challenges.