Skadden will wind down its Shanghai operation due to a slow market, with some partners relocating to other offices, a spokesperson has told China Business Law Journal.
“Shifting market dynamics have led us to the decision to begin winding down our operations in Shanghai and rescale our China corporate practice,” the spokesperson said.
While no specific timeline for the office closure has been provided, the spokesperson emphasised that the firm regularly evaluates its activities in each region to align with client needs and overall strategy.
A source said the Shanghai office, which employs 20 professionals, would see some partners relocating to other offices. Partner Wu Yuting will move to the Beijing office and partner Li Haiping, who co-heads the China practice based in Hong Kong and Shanghai, will remain in Hong Kong.
Skadden will continue to operate its branches in Beijing, Hong Kong, Seoul, Japan and Singapore to serve its Asian clients.
Two years ago, Skadden’s China head Julie Gao joined ByteDance as chief financial officer. She was recognised as a leading IPO lawyer in Asia, advising major Chinese technology firms on their US listings, including JD.com, Pinduoduo and Meituan.
Skadden’s move marks it as the ninth law firm to downsize its operations in China this year, joining the ranks of other firms such as Reed Smith, Dechert, Morrison Foerster, and Sidley Austin, all of which have also scaled back their presence in the region amid challenging market conditions.
Flight or fight?
A sluggish market and data regulation concerns are common culprits blamed for a spate of foreign law firms shutting up shop in China, but a few outliers have chosen to sail against the tide and expand their businesses.
