China Business Law Journal – July/August 2024

Keep calm and carry on

When uncertainty looms large, it is the duty of the general counsel to maintain stability, guiding the company with a steady hand and a clear mind.

Slowing economic growth, tightening regulations and intensifying global competition are putting significant pressure on businesses across most sectors. Additionally, US-China tensions and the threat of further trade restrictions mean Chinese firms must re-evaluate their global strategies and seek alternative markets.

In the midst of supply chain disruptions, escalating costs and a waning domestic demand, law firm managers in Beijing, Shanghai, Guangzhou and Shenzhen offer their best practice advice to help clients navigate adversity in our cover story, Roads less travelled.

When general counsel are told to “do more with less”, we know China’s legal market is feeling the pinch. While navigating sluggish markets presents challenges, law firms will actively seek fresh avenues for growth. In Praying for Rain, based on China Business Law Journal’s data from 104 Chinese law firm’s revenue for the past year, we continue to benchmark the markets with a series of quantitative indicators, analyse growth and operational strategies of Chinese law firms, and explore how they work towards matching clients’ evolving legal needs.

As for international law firms, a tide of US law firms retreating from China’s legal market is no doubt the talk of the town. Since June 2023, at least 10 prominent US firms closed their Greater China offices. While market sluggishness and concerns over data regulations bear some blame, Flight or Fight? unravels a medley of underlying causes behind the exodus of US firms, from US-centric decision making and dwindling profit margins to growing competition from Chinese peers.

Among all these seismic shifts, constancy is a welcome refuge where the legal community can convene and commemorate shared milestones. This year, the International Association for the Protection of Intellectual Property (AIPPI) annual congress, hosted by China for the first time, is scheduled to commence in Hangzhou. In Eyes on Hangzhou, Long Chuanhong, president of the Chinese chapter of AIPPI, gives readers a sneak peek at the highlights of this longstanding event.

To end on a high note, this year’s China Business Law Directory provides an indexed compendium of leading law firms made convenient for in-house counsel to source for diverse types of China-related legal services. Featuring detailed profiles and distinctive practice specialties, the directory serves as a comprehensive resource of market intelligence. Readers are also invited to explore the online portal for swift searches and easy access.