In 2024, a growing number of U.S. law firms are rapidly retreating from Greater China’s legal market, signaling a period of uncertainty for foreign legal practices in the region. At least 11 prominent U.S. firms have closed or announced plans to shut down offices in Shanghai, Beijing, and Hong Kong this year, amidst a backdrop of stagnant deal activity, increasing geopolitical tensions, and mounting challenges for foreign businesses in China.
This wave of withdrawals has intensified following significant shifts in U.S.-China relations, particularly with the inauguration of President-elect Donald Trump, who has proposed an additional 10% tariff on Chinese imports, further straining diplomatic ties. In the wake of this, leading law firms such as Milbank, Paul, Weiss, Rifkind, Wharton & Garrison, and Skadden, Arps, Slate, Meagher & Flom have confirmed office closures in key Chinese cities, with many citing shifting market dynamics and declining business prospects as primary reasons.
“2024 is shaping up to be a watershed year for U.S. law firms in China,” says Peter Zeughauser, a respected law firm consultant based in California. “While some firms are still committed to maintaining a presence in the region, the trend toward office closures is accelerating, and I expect more firms to follow suit in the coming years.”
While many firms have exited entirely, others have consolidated operations, focusing on fewer locations, particularly Hong Kong, where some firms continue to maintain a presence. Notable firms including Sidley Austin, Reed Smith, Perkins Coie, Dechert, Morrison & Foerster, and Orrick, Herrington & Sutcliffe have all confirmed closures or significant downsizing in their China offices in 2024. Additionally, Mayer Brown’s Hong Kong operations saw a restructuring, launching a new, smaller firm, with many of its former team members branching out into an independent entity.
Despite these closures, many U.S. law firms have emphasized their ongoing commitment to the region. “We remain dedicated to serving our clients in China and the surrounding areas through our other offices in Singapore, Tokyo, Seoul, and other key markets,” says a spokesperson for one firm. The restructuring does not signal a complete retreat but rather a shift toward more strategic and sustainable operations across the broader Asia-Pacific region.
According to Leopard Solutions, which tracks law firm hiring, of the 200 highest-grossing U.S. law firms, 60 had a presence in Beijing or Shanghai as of December 2024. Of these, 35 firms have reduced headcount or closed offices, with the most significant declines occurring in Hong Kong.
However, not all firms are pulling back. Los Angeles-based Loeb & Loeb, for instance, significantly expanded its Beijing office in September 2024 by acquiring a team of 17 lawyers, paralegals, and IP specialists from Perkins Coie, a firm that recently closed its Beijing operations. This strategic expansion highlights the diverse strategies employed by firms as they adapt to changing conditions in the region. Similarly, Quinn Emanuel Urquhart & Sullivan opened a new office in Beijing in March 2023, signaling a continued investment in the region’s legal market despite broader trends.
The current reshaping of U.S. law firm operations in Greater China presents a crucial inflection point for the legal industry, underscoring the complexities of conducting business in one of the world’s most dynamic but volatile markets. As geopolitical tensions evolve and the Chinese economy navigates shifting trade policies, the long-term presence of foreign legal firms in the region remains uncertain.
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