Latham & Watkins is closing its Shanghai office amid a slowing economy and a crackdown on western businesses operating in China. The firm will now run mainland China services from Beijing.
The closure, following the expiry of an office lease, will end a near 20-year presence for Latham in China’s main financial centre.
A Latham spokesperson said: ‘Since we opened our offices in Mainland China, our regional model has allowed us to draw on a deep bench of lawyers with very significant experience in the region. We have a strong track record in China and across Asia, and we are confident that we have the resources, expertise, and market knowledge to serve our clients effectively from a consolidated hub in Beijing.’
Expanding cybersecurity and data protection laws in China are making it more difficult for foreign law firms to practise there. Latham’s retrenchment follows a decision earlier this month by Dentons to sever formal ties with Chinese partner Dacheng.
Trading conditions are also being adversely affected as the world’s second-biggest economy slows. Last week the Chinese yuan fell to its lowest level in 16 years.
Latham’s Shanghai personnel, including 10 lawyers led by corporate partner Rowland Cheng, are being given the opportunity to move to its Beijing arm, which currently houses five lawyers. The spokesperson added: ‘China is an important market for the firm, and an integral part of our practice in Asia and globally. We are proud of our accomplishments in the region and are excited by the continued opportunities to serve our clients in this vibrant and dynamic economy.’
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