In 2024, major U.S. law firms rapidly reduced their presence in Greater China, signaling an uncertain future for foreign legal practices in the world’s second-largest economy. At least 11 prominent firms, including Skadden, Arps, Slate, Meagher & Flom and Paul, Weiss, Rifkind, Wharton & Garrison, either closed or announced plans to shutter offices in Shanghai, Beijing, and Hong Kong. This wave of exits reflects geopolitical tensions, reduced deal activity, and mounting challenges for foreign businesses in the region.
Accelerated Exits Amid Political and Economic Shifts
The trend of U.S. firms leaving China began years ago but reached a peak in 2024. Law firm consultant Peter Zeughauser described this year as a “watershed moment,” with a significant uptick in office closures. Factors such as U.S. President-elect Donald Trump’s promise to impose an additional 10% tariff on Chinese imports have exacerbated tensions, potentially driving further retrenchments.
Notable firms like Sidley Austin, Dechert, Morrison & Foerster, and Weil Gotshal & Manges joined the exodus, while Mayer Brown restructured its Hong Kong operations. Some firms, like Milbank and Reed Smith, opted to completely exit China, while others consolidated their presence in fewer locations, primarily Hong Kong.
Shifting Strategies and Regional Consolidation
Although many firms scaled back, others maintained or expanded their operations in China. Firms like Quinn Emanuel Urquhart & Sullivan and Los Angeles-based Loeb & Loeb adopted growth strategies. In March 2023, Quinn Emanuel opened a Beijing office, complementing its existing presence in Shanghai and Hong Kong. Meanwhile, Loeb & Loeb absorbed a team of 17 lawyers, paralegals, and IP specialists from Perkins Coie’s Beijing office, along with control of the firm’s IP agency in the region.
Leopard Solutions, a legal industry data provider, reported that out of the 200 top-grossing U.S. law firms, 60 had offices in Beijing or Shanghai at the start of 2024. However, 35 of these firms reduced their headcounts or closed offices over the year.
Navigating a Complex Future
Despite the closures, U.S. law firms emphasized their continued commitment to serving clients in Asia. Many firms shifted their focus to markets such as Singapore, Tokyo, and Seoul to maintain a foothold in the region. With 2024 marking a critical turning point, the future of foreign law firms in China remains fraught with uncertainty, requiring strategic recalibration to navigate the evolving political and economic landscape.
