Cleary Gottlieb Steen & Hamilton LLP, a prominent U.S. law firm, announced plans to shut down its Beijing office in July 2025. This move is part of a broader trend of U.S. law firms scaling back their presence in China due to various challenges, including subdued deal activity, heightened geopolitical tensions, and increasing pressures on foreign businesses.
In its statement released on Monday, Cleary stated that it will consolidate its operations in Hong Kong, aiming to serve its clients more efficiently across the region. The firm has had a presence in Beijing since 2006 and currently employs seven lawyers there. However, with 31 attorneys already based in its Hong Kong office, the decision reflects a strategic shift as the firm adapts to the evolving legal landscape.
Cleary’s exit follows a series of similar moves by other major U.S. law firms. At least 11 firms, including Milbank, Paul, Weiss, Rifkind, Wharton & Garrison, and Skadden, Arps, Slate, Meagher & Flom, have either closed or announced plans to close their offices in Shanghai, Beijing, and Hong Kong in 2024. This retreat from China underscores the challenges posed by reduced business opportunities and the increasingly complicated regulatory and geopolitical environment.
The regulatory landscape in China has become more difficult for foreign firms, with new laws and restrictions tightening the operating environment for international businesses. U.S. firms are facing increasing pressure to adjust their strategies amid uncertain trade relations and regulatory developments.
As Cleary prepares to close its Beijing office, its decision marks a significant shift in its regional operations and reflects the broader trend of U.S. law firms reassessing their presence in China amidst complex legal and economic conditions.
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