U.S.-based Biglaw firms continue to navigate a landscape fraught with geopolitical tensions and a slowing market in China. Eversheds Sutherland, which reported gross revenue of $1,439,118,430 in 2023, is now contemplating closing its Beijing office. This possible move diverges from the typical reasons for such exits and is more closely tied to its strategic relationship with King & Wood Mallesons (KWM).
In a notable development last year, Eversheds Sutherland and King & Wood Mallesons entered into an exclusive referral alliance. Under this alliance, KWM refers outbound work from Europe, the Middle East, Africa, and South America to Eversheds, while Eversheds refers China-related work to KWM. As a result of this partnership, Eversheds has been gradually absorbing Europe-based partners from KWM, a process that dates back to a 2013 merger with the now-defunct British practice, SJ Berwin.
Eversheds has confirmed that the future of its Beijing office is “under review,” although no final decision has been made. This decision appears aligned with the phased strategy of its alliance with KWM. “Phase two” of this strategy may involve the integration of Eversheds’ mainland China-based lawyers into KWM, paralleling the integration process already seen in Europe.
Should the Beijing office close, Eversheds plans to relocate affected lawyers to its Shanghai office. This move underscores the firm’s ongoing commitment to Asia as a key strategic jurisdiction, highlighted by its existing offices in Hong Kong and its efforts to gain approval for a Singapore office.
While details remain under wraps, Eversheds is poised to become the first U.K.-based firm to shutter a China office amid a wave of departures from the region. For additional insights, Law.com International provides further information on this evolving story.