Chinese law firms keep enhancing global presence

The recent cooperation between Beijing-based Yingke Law Firm and the American multi-national law firm CKR Law to found a new law firm in the United States has drawn much attention in China's legal service industry.

This is just Yinke's latest move to expand globally. As one of China's largest law firms by number of lawyers, it has been pressing ahead with its going global strategy for years. Through its global legal service alliance project, the firm has managed to reach 115 cities in 55 countries so far.

Yinke is not alone. Dacheng, another well-known Beijing-based law firm which is now named Dentons, started to build up its overseas presence as early as 2007. With revenue of 300 million yuan ($42 million), the firm was among China's top ten law firms at that time.

By 2013, the firm had set up local offices in seven overseas cities and established a global network of 37 member law firms. It also became the only Chinese law firm to join the World Service Group as a member, forging partnerships with more than 80,000 professionals globally.

Powered by a merger with global law firm Dentons in 2015, Dacheng turned itself into the world largest law firm by number of lawyers with its revenue also entering the global top-ten ranking.

Beijing-based DHH Law Firm also joined the race of global expansion in 2015. So far, the firm has founded ten local branches across eight countries and regions with nearly 40 lawyers stationed abroad.

Different strategies are adopted by Chinese law firms when they go global. The most common one is to directly open local offices in destination countries. This strategy can maintain the complete independence of a law firm while also meaning higher running costs. 

Another way is to build an alliance with local firms under the Swiss Verein Structure, which requires allies to unify their names while allowing them to retain their own independence in terms of management and liability assumption.

Experts believe that as China continues to strengthen its economic ties with the rest of the world, the internationalization of Chinese law firms will be further fueled. Chinese law firms are expected to play a bigger role in the settlement of cross-border legal disputes.

They also call for more professional trainings aimed at equipping Chinese lawyers with the expertise needed for the handling of cross-border disputes.