Weil Gotshal & Manges has finally bitten the bullet and opened an office in China, incurring a level of investment in the region it had previously refused to incur since first arriving in Asia in 2000.

Hiring Clifford Chance's managing partner on the ground Steven Xiang in the process, the New York firm has opened an office in Shanghai after receiving the requisite license for the opening from the Ministry of Justice on 7 July.

Xiang started with his new employers on 17 July and immediately flew to New York on a deal. While at CC, he focused his practice on advising private investment funds and venture capital houses, as well as acting on investment and financing transactions for Asian companies. Prior to CC, Xiang practised at the Hong Kong office of US firm Pillsbury Winthrop until mid-2002 accruing experience in M&A, private equity, international securities offerings, as well as joint ventures and restructurings.

Bill Sievers, managing partner of Weil Gotshal's Singapore office and the partner responsible for leading the firm's expansion in Asia, will base himself in both the Shanghai and Singapore offices.

Sievers said: "Having worked in Asia for the last few years, I'm well aware of the tremendous potential of China. Our plan is to have an office that has its own clients and our initial focus will be on cross-border M&A, private equity and international securities offerings."

In an unusual move for an international firm, Weil Gotshal first entered Asia on 26 July 2000 snubbing Hong Kong to open an office in Singapore. In 2002, Sievers told ALB: "Hong Kong requires a very different strategy. We would be looking at a huge investment."

Through its relationship at that time with Andersen Legal, Weil Gotshal was introduced to Singapore firm Rajah & Tann with whom it formed an alliance.

Sievers told ALB the link with Rajah & Tann gave the firm the opportunity to decide on the next part of its strategy in Asia. "We feel that with our modest entry into Asia, we have the ability here in Singapore to gather that type of intelligence. It is a way of learning about the market without dropping huge bundles of cash."

Sievers added: "The mode we've chosen to enter China is once again modest I think. We're starting in Shanghai with someone who is known in the market and has credentials. If you're going to get serious about developing in a market, you've got to have people on the ground."

Commenting on Xiang's hire, Sievers said: "The figure at the top of the pyramid is extremely important. It's very good to have someone who is a Chinese local as everybody is looking for somebody of Steve's vintage."

Weil Gotshal adopted a similar low-key approach when it first entered Europe in 1991 - only opening London and Frankfurt offices after establishing a presence in Budapest, Prague and Warsaw.

Weil Gotshal's chairman Stephen J. Dannhauser admitted the firm had been looking to expand in China since last year. Efforts to secure an office site - which can be found at 4101 CITIC Square, 1168 Nanjing Road West in Shanghai - had escalated since the turn of the year.

Sievers said he hoped to have 8-10 lawyers in place in Shanghai by the end of the year, and would not rule out additional offices in Beijing and even Hong Kong further down the track.