Duan & Duan Law Firm has made significant strides in its global expansion in 2024 with the acquisition of Japan-focused A&Z Law Firm, establishing its Tokyo office and opening a London branch, reflecting its ambition to align with the growing trend of China firms going global.
In October, the former UK law firm Jackson Lyon merged with Duan & Duan, forming the new London office, which now comprises 11 members.
“We’ve been preparing for the London office for nearly five years,” said Eric Zhuang, equity partner and executive chairman of the global board of directors at Duan & Duan.
“Before launching the London office, we had already established seven international branches, each over a decade old. We waited until the regional market was mature enough for business rather than opening for the sake of it.”
The Blue Sky Gory case represented a business opportunity for the London branch. This case is linked to one of the world’s largest cryptocurrency scandals — an alleged Bitcoin money laundering operation involving more than GBP3 billion (USD3.76 billion) in the UK.
Between 2014 and 2017, Qian Zhimin, owner of Tianjin-based Blue Sky Gory Electronic Technology, reportedly stole from its investors in fraudulent wealth schemes and fled to the UK, where the stolen money was used to purchase Bitcoin.
The Crown Prosecution Service has initiated civil recovery proceedings, allowing the victims to reclaim their funds. Duan & Duan is representing many Chinese victims in this effort.
“So our London branch is built on existing business relationships,” Zhuang said. “China’s growing business presence in Europe, along with the influx of Chinese nationals to the UK, underscores London’s importance as a key market.”
In addition to the new London office, Duan & Duan has seven offshore branches in Hong Kong, New York, Seattle, Nagoya, Madrid, Phnom Penh and Tashkent. Despite the firm’s extensive experience in establishing international offices, Zhuang noted that launching the London office was more complicated than previous global branches, which is a common issue for Chinese law firms in Europe and the US.
“We faced business-related difficulties in the past. As the global surroundings changed, while those business challenges remained, new obstacles emerged,” he said.
However, Zhuang believed that challenges could be transformed into opportunities. He cited international sanctions as a double-edged sword: while they may hinder the law firms’ interactions in the global legal market, they can also open new avenues for business. He emphasised that difficulties are a constant in any era.
Duan & Duan has further ambitions, having recently received approval from Japanese authorities to establish a branch office in Tokyo, which is currently undergoing the necessary filing process in China. The Tokyo office will initially consist of two lawyers, paralegals and administrative staff, including Sophie An, the former principal partner at A&Z, who joined Duan & Duan last October.
Specialising in Japanese business, A&Z has merged with Duan & Duan and it was finalised in April. Its 32 staff members were added to the combined house.
During A&Z’s 20th anniversary celebration in February, Shuichi Akamatsu, the consul general of Japan in Shanghai, congratulated the company on its merger with Duan & Duan and expressed optimism that the union would foster further economic development between China and Japan.
Once fully operational, the Tokyo branch will become Duan & Duan’s second office in Japan, a strategic decision based on business needs. According to 2023 statistics from China’s General Administration of Customs, China is Japan’s major source of imports and the second largest export country. Duan & Duan’s data also reveals that Japanese clients comprise a significant portion of its clientele.
Currently, the Tokyo office can only provide non-Japanese legal advice. However, it will enhance communication and co-ordination between the management of Japanese companies in China and their headquarters in Japan, while also assisting Chinese companies looking to invest in Japan.
Zhuang mentioned that the long-term goal is to incorporate Japanese legal counsel to assist Chinese organisations and citizens with legal issues in Japan.
As more Chinese law firms seek to expand internationally, Zhuang believed success requires a targeted approach, focusing on China’s strengths and emerging industries abroad, such as renewable energy and data compliance.
Duan & Duan plans to further expand into countries and cities such as Vietnam and Dubai, with potential new branches in Sydney and Singapore in the next year.
“Our international strategy is centred on providing comprehensive legal services to clients, responding to the Belt and Road Initiative (BRI), and seeking growth in the legal services market of developed countries,” Zhuang said.
Since the introduction of the BRI, many state-owned and large enterprises have heeded the call for international expansion. Developed countries, particularly in Europe and the US, remain prime destinations for Chinese companies due to their mature markets.
Looking ahead, Zhuang aims to leverage local talents among overseas Chinese lawyers to strengthen the capabilities of international branches. He said the firm also plans to utilise the resources from the 36 established offices to enhance overseas operations, ensuring that Duan & Duan’s global presence effectively supports Chinese enterprises in their international endeavours.
