A couple of interesting articles have turned up in the last 24 hours..
Australia’s ALB publication reports on a range of developments in the China legal market recently.
Greater China: International firms jockey for position amid downturn
By Yun Zhang | Friday, 20 February 2009
With the economic downturn overshadowing much of the region, many international firms in Greater China are looking at the essentials and reassessing their business models. A majority have announced budget cuts or adopted other strategies to keep themselves buoyant, while some have actually decided to downsize.
However, a few firms still see opportunity to expand at this time. US firm WilmerHale, for example, is in the process of applying for a license to open its second China office, in Shanghai (the firm’s only current Asian office, established in 2004, is in Beijing).
UK firm Simmons & Simmons is reportedly looking at a plan to set up an office in Beijing, its second in mainland China. The firm is particularly interested in serving clients in the energy sector, after it hired Brian Downie in Hong Kong as head of international projects group in Asia from Minter Ellison last November.
Eversheds, another UK firm, is also on an expansion drive. Having opened an office in Shanghai in 2006, it has now lured five partners from DLA Piper and one from Fried Frank, as part of its plan to launch a Hong Kong office in March.
The new partners are banking partners King Tak Fung and Michael Yau and litigation partners Ivan Ng, Ronald Sum and William Leung from DLA Piper’s Hong Kong office, and corporate partner Stephen Mok from Fried Frank Hong Kong office. In January, Eversheds opened its Singapore office and appointed DLA Piper’s former Singapore managing partner Desmond Ong to head the new office
While international law firms are building in China – it seems that multinationals and industry are going the other way according to this report on Reuters yesterday
27 percent of foreign firms seen laying off China staff
Fri Feb 20
By Kirby Chien
BEIJING (Reuters) – Official media said on Friday that 27 percent of multinational firms in China had already started laying off employees, citing a survey by a state-controlled employment firm.
The official China Daily newspaper cited a FESCO survey that had polled 356 of its clients across the country that included a wide range of industries.
The report did not say how many jobs could be lost, but the trend poses tricky legal and political problems for foreign companies as Beijing has asked firms not to dismiss workers due to the global economic turmoil.
China fears social unrest as 20 million migrant workers have already lost their jobs, and one in five firms in China’s once vibrant export hub in Guangdong may soon lay off workers.
Full Article at http://uk.reuters.com/article/worldNews/idUKTRE51J24V20090220
