U.S. law firm Orrick, Herrington & Sutcliffe said on Friday it will consolidate its Chinese operations in Beijing after the lease on its Shanghai office expires in July.
Orrick's pullback comes as some U.S. and other international law firms have retreated from the Chinese market as a result of growing pressures on foreign businesses there and converging economic and geopolitical challenges.
Orrick's office closure will result in eight Shanghai employees, including one lawyer and one consultant, being let go and offered severance, a firm spokesperson confirmed. Five other lawyers, including two partners and two associates, will become affiliated with the Beijing office.
The firm has also closed its office in Taiwan, but a spokesperson said there were no full-time lawyers based there.
"These moves reflect a rebalancing of our Asia Pacific platform, including the launch of our Singapore office in 2021, to align with client demand," the spokesperson said in a statement.
Orrick's Beijing team works on litigation matters in U.S. federal courts and the U.S. International Trade Commission, which has the power to limit or ban imports into the United States. It also handles cross-border deals involving Chinese companies, the spokesperson said.
After the consolidation in Beijing, Orrick will have five partners and six associates and of counsel in China, the spokesperson said.
Orrick also has an East Asian office in Tokyo.
Reuters in November found that 32 of the 73 largest U.S. law firms in China shrank their attorney presence in the country in the last decade, according to data from Leopard Solutions, which tracks law firm hiring. In Beijing, 26 of the 48 largest U.S. law firms drew down their presence since 2018.
Global law firm Dentons last year ended its combination with Chinese law firm Dacheng, an 8,000-lawyer firm that accounted for its entire presence in mainland China. It cited Chinese government rules on data privacy and cybersecurity that imposed new requirements for collecting sensitive data and limited its transfer outside of China.
Other firms have cited market conditions in announcing cuts or office closures in the country. UK-founded Linklaters in September said it was laying off 30 China-based lawyers due to the country's "prolonged" economic downturn, which has brought a drop-off in transactions and deal activity requiring legal advice.
U.S.-founded law firms Akin Gump Strauss Hauer & Feld, Latham & Watkins, Perkins Coie and Proskauer Rose have also closed at least one of their China offices since June, according to media reports. The firms did not respond to requests for comment from Reuters.
