Skadden to close in Shanghai, cut roles in China corporate practice

New York firm latest of a string of leading international practices to scale back in China

Skadden Arps Slate Meagher & Flom is set to close its Shanghai office and cut roles from its China corporate practice. 

The move, which will see the New York firm consolidate its mainland China presence in Beijing, is in line with similar measures taken by a host of US firms in recent months.

Skadden has 19 lawyers in Shanghai, according to its website, including two partners, Yuting Wu and Haiping Li. 

It is understood that Wu will move to Beijing while Li, who divided her time between Shanghai and Hong Kong, will make Hong Kong her permanent base. Some of Skadden’s Shanghai-based lawyers are understood to have been offered the opportunity to move to other offices.

“Skadden is committed to a strong presence across Asia and to serving our clients in the region with excellence,” a Skadden spokesperson told GLP. “We continually examine the scope and scale of our practices and operations around the world to ensure that they are aligned with our clients’ needs and our strategic plans.”

They added: “Shifting market dynamics have led us to the decision to begin winding down our operations in Shanghai and rescale our China corporate practice. We will continue to provide outstanding service to our clients from our other five offices in the region.”

Corporate is Skadden’s largest practice area in China. More than half of the roughly 80 lawyers in its Hong Kong office are corporate advisors, as are 14 of the 19 lawyers the firm has in Shanghai, including Wu and Li. Almost all of the lawyers in its 13-strong Beijing office are in the corporate team, among them both of the office’s partners. 

A procession of US firms have scaled back in China this year amid a prolonged downturn for corporate work in the country, tightening regulation and frosty political relations between China and the West. 

Last month Perkins Coie, which closed its Shanghai base last year, said it would shutter in Beijing and refocus on the booming southern city of Shenzhen. Also in September Reed Smith confirmed it would close its Beijing office and consolidate its China operations in Shanghai.

Meantime Dechert confirmed in July it was planning to close its bases in Beijing and Hong Kong, while earlier in the year Morrison Foerster said it was closing its representative office in Beijing, Sidley Austin and Orrick confirmed closures in Shanghai, Mayer Brown said that it was hiving off the bulk of its 170-lawyer Hong Kong arm and Weil said it was mulling the closure of its Shanghai office, having shut its Beijing base last year.

Last summer Dentons also broke off from its China arm citing new Chinese government rules on data privacy and cybersecurity, while Latham & Watkins closed in Shanghai and Ropes & Gray downsized its base in the same city.

That came shortly after Eversheds Sutherland’s international arm and King & Wood Mallesons’ China business formed an exclusive alliance that saw KWM close its six offices in the UK, Europe and the Middle East. Eversheds portrayed the deal as a practical alternative to having a large presence on the ground in China. 

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