Singapore’s two largest law firms are expanding their operations in China, banking on growing interest from Chinese firms in doing business overseas at the same time as a few of their global competitors pull out of the world’s second-largest economy.
Rajah & Tann Asia is about to open an office with an initial 10 lawyers in Qianhai, Shenzhen, in October, Shenzhen office head Hew Kian Heong said by phone. The office within the Chinese technology hub will concentrate on international arbitration, in addition to construction, technology, media and telecommunications.
“Geopolitics and rising tensions between China and the West have made private Chinese companies more interested and motivated to invest in fast-growing Southeast Asian economies,” Hew said, adding that Singapore has long positioned itself as a springboard for such investment within the region.
China’s Ministry of Justice has approved a plan that may expand Rajah & Tann’s Shanghai office.
In January, Allen & Gledhill entered China, opening a brand new office in Shanghai to assist Chinese firms “navigate the challenging and changing business and legal landscape” in Southeast Asia.
Singapore is a preferred regional hub for Chinese firms seeking to go global. The moves by Rajah & Tann and Allen & Gledhill contrast with some foreign firms scaling back their presence in mainland China and Hong Kong amid a scarcity of deals and heightened regulatory scrutiny from Beijing.
Philadelphia-founded Dechert is closing its offices in mainland China and Hong Kong. Mayer Brown is exiting a 160-lawyer partnership in Hong Kong, and Winston & Strawn is closing its office in town.
According to the most recent available data from the Ministry of Justice website, the variety of foreign law firms with offices in China has fallen from 225 in 2019 to 205 in 2022.
