Less than a month after US-based Morrison Foerster announced the closure of its Beijing office, Dechert has confirmed to China Business Law Journal that it will join the American law firm exodus.
“Following a strategic review of our office locations, we have made the careful decision to close our Chicago, Beijing and Hong Kong offices around the end of 2024,” a Dechert spokesperson said.
“In Asia, we will continue to serve our clients out of our Singapore office, maintaining our award-winning practices and support for the Asia-Pacific region.”
Dechert’s exit from the Chinese market sets it apart as the only firm among the six US firms to completely withdraw from China this year. The other five are Morrison Foerster, Sidley Austin, Weil, Orrick and Perkins Coie.
Last year, Akin, Winston & Strawn, Latham & Watkins and Proskauer also decided to shutter some of their offices in China.
Alexis Lamb, a partner and operations director at the Asia-focused legal recruitment company Vargas Partners, believed that firms such as Dechert even closing their Hong Kong office were in the minority.
“China is still a market that is substantially larger than any other in Asia, even if you put all of Southeast and South Asia together, and Hong Kong will always be the bridge between mainland China and other major global markets,” Lamb said.
The Beijing office of Dechert had only three employees: managing partner Wang Yang, foreign registered lawyer Dian Wang and counsel Zhao Yang, all of whom are also based in Hong Kong. The Hong Kong office has three other partners Maria Sit, Michael Wong, and Daniel Margulies, and eight counsel and associates.
Earlier in March, Dechert had already scaled down its corporate practice in Hong Kong from eight members to four. One of its corporate partners, Stephen Chan, joined Dentons in June as a result of the downsizing.
As international law firms continue to scale back their operations in China, Lamb noted the number of international lawyers in the country has already declined and would continue to do so. However, she said this trend was an exception in the Asian market, as the number of international lawyers and offices in Singapore, South Korea and Japan continued to grow.
US law firm footprint in Greater China
| Closed offices | Remaining offices | |
|---|---|---|
| 2024 | ||
| Dechert | Beijing, Hong Kong | |
| Morrison & Foerster | Beijing | Shanghai, Hong Kong |
| Sidley Austin | Shanghai | Beijing, Hong Kong |
| Weil | Beijing, Shanghai | Hong Kong |
| Orrick | Shanghai, Taipei | Beijing |
| Perkins Coie | Shanghai | Beijing, Taipei |
| 2023 | ||
| Akin | Beijing | Hong Kong |
| Winston & Strawn | Hong Kong | Shanghai |
| Latham & Watkins | Shanghai | Beijing, Hong Kong |
| Proskauer | Beijing | Hong Kong |
