Perhaps most surprising in the current global economic climate is that PRC firms continue to lure lawyers with international backgrounds to address the growing demand for international legal specialists to deal with cross-border work.

In the past few months, a number of international lawyers have moved from international to local firms. The willingness of these lawyers to shift their loyalties, speaks volumes. And the roll call of just some of those who have made the move is indicative of the aspirations and possibilities of firms and the individuals alike. Llinks has recently lured Robert Xia from Clifford Chance; Shanghai-based MWE China Law Offices has netted three lawyers from international firms for its partnership – Helen Zhang, Henry Chen and Joseph Zhou; and Beijing-headquartered Longan recently announced its hiring of a renowned American criminal defence lawyer, Alan Ellis, as a foreign legal counsel. Other firms, including Run Ming, Yao Liang and Deheng (Shanghai), have also welcomed new faces from international firms.

Leading players in the industry see it as an undisputable trend. Many lawyers in international firms feel uncertain about their prospects as their peers in other firms in Asia and overseas are shown the door, even though they themselves are not yet certain that the shadow of redundancy will cross their threshold. Many are now planning to move either in-house or to local firms, according to Charles Lee, a legal recruitment agent from Antal International in Beijing. “Internal politics somehow are more obvious in this period,” said Lee. “The move normally happens among senior lawyers. They move to local firms to work as partner. One reason for this is that not many PRC lawyers can achieve a promotion to equity partner in foreign law firms, and the other reason is they won’t be working under international firms’ global policy,” continued Lee.

Domestic firms’ rise to prominence is also a determining factor. Increasing numbers of PRC firms have better access to high quality clients with the global conditions. “Quality lawyers’ moving from international firms to local ones is definitely a marked trend at present,” said Frank Zhang, senior partner of Longan, a firm which already has foreign legal consultants. “They may have more opportunity to lead local firms than international firms as a growing number of Chinese companies are seeking outbound deals that require international legal expertise. Some of them even earn more leading local firms than working in international ones. Now, another three foreign lawyers are negotiating to join us,” added Zhang.

Progression
Generally speaking, international firms are still a step ahead in creating and maintaining their management structures. They have established good reputation, provide more opportunity for exposure to high-end transactions and offer regular training programs that may be of benefit to lawyers in fostering their careers. However, Chinese lawyers often feel they have less freedom to develop and progress professionally in international firms. “It is nothing related to discrimination,” said Martyn Huckerby, partner of Mallesons Stephen Jaques’ Shanghai office. “But it may take more time for Chinese lawyers to get partnership in international firms due to their different business models and the shorter time generally required to be promoted to partner in many local PRC firms.”

For those of high talent who are able to transcend current market weakness, it is not difficult to make the move. And much can be gained from switching from firm to firm. Ding Zhenyu, who went from Dewey & LeBoeuf’s Hong Kong office to the partnership of Run Ming’s Shanghai office early this year, told ALB China: “Partnership at Run Ming was one of the major reasons driving me to move. But in Hong Kong, I learned a lot while working for Simmons & Simmons and Dewey & LeBoeuf.”

Lack of international expertise
However, while much of the legal market is feeling constrained by reduced demand, there are a few local PRC firms in which the shortage of skilled legal professionals and practitioners with international expertise continues to be an issue.

“There is still a shortage of good candidates with enough skills that may meet high-end clients’ demand. I feel that there are not many local trained lawyers who can really be called high-end legal professionals,” Li Zhiqiang from Jin Mao Partners told ALB China. Zhu Linhai, managing partner of AllBright, has a similar opinion. “Local firms generally don’t have much problem handling deals. However, when it comes to the high end of the market, many may feel pressure when providing services in foreign-related corporate work, arbitration, and cross-border M&A,” said Zhu.

Having perceived their weakness, Chinese firms have tried to strengthen their position by a wide range of strategies that include attending international seminars on legal issue that are of a concern to them, consulting foreign legal specialists, and visiting and associating with international firms. But such strategies are no longer sufficient in a market that is still expanding outwards at a great speed. Procuring quality lawyers from international firms is the quickest and most effective way for local firms to enhance their presence in the upper echelons of the market.