Multinationals and Chinese companies in the US now have more choices when they shop around for PRC legal services in New York, as King & Wood, one of the leading firms in China, has made Madison Avenue in Manhattan its newest global address.

The New York office opening is the most recent step in King & Wood’s global expansion. The firm has already established a presence in Silicon Valley, Hong Kong (in association with Arculli Fong & Ng) and Tokyo (in association with Miyake & Yamazaki), and formed a strategic alliance with Sydney-based firm Gilbert + Tobin at the end of 2007 to strengthen its position in Australia.

At the same time, it has increased its domestic offerings significantly by expanding into a number of developing cities, including Qingdao, Suzhou and Tianjin.

The firm’s relationships with a growing number of American companies and law firms, coupled with China’s outbound investment trend, have led it to establish a branch office in New York, which will serve as a local presence in dealing with many of the firm’s American clients and also provide international support for clients from its home jurisdiction.

According to Bloomberg, in the first half of 2008, overseas investment of Chinese companies has more than doubled from last year and, by September this year, Chinese outbound investment has already reached US$23bn. King & Wood has seen an increasing number of its domestic Chinese clients invest abroad for both market seeking and resource seeking opportunities.

However, the new arrival may have to face a certain level of competition in the city as a number of PRC firms have already established a presence there.

Jun He, King & Wood’s closest rival, opened its New York office in 1994, making it the first PRC firm to expand overseas. Other PRC firms that claim to have an office in New York include Beijing Deheng, Shanghai firm Richard Wang & Co and Shenzhen-based Guanghe and Shujin.

“The main functions of our New York office are marketing and client liaison. The New York office primarily provides PRC legal advices and is a facilitator of our practices in China,” said Kirk Tong, partner of Jun He.

Currently, there are two partners based in Jun He’s New York office. Both are US qualified, but Jun He will work closely with US firms when advising on complicated transactions and issues in the US.

“We don’t want to grow our New York office to a large-sized independent practice, so the New York office won’t compete with US firms. Instead, we actively work with US firms to ensure our clients receive quality legal advice in the US,” said Tong.

Although King & Wood’s new development in the US is known to Jun He’s partners, they are not concerned about the competition King & Wood will bring.

“As PRC firms are increasingly involved in large cross-border transactions, it’s necessary for top-tier PRC firms to establish a presence in important international jurisdictions,” Tong said.