We came across the following short exchange on the China Law Discussion list yesterday which seems to us quite instructive as to how China’s legal industry will fare in the next 6-12 months..
HK Josephs (see below) makes a general enquiry to list members as to what effect the global slowdown is having on the business of law within China.
It is interesting to see the reply from David Atnip the Business Development Director at legal recruiter LAWINN based in Shanghai. Normally recruiters are so gung ho that even the threat of a nuclear holocaust won’t prove to be a long term disincentive to the employment market.
And although Atnip tries to stay on the side of positive he does note… Most managing lawyers we talk to are taking a wait-and-see attitude, hoping to avoid drastic measures. Many commentators think that China will come out of this period more quickly than developed countries.
So.. it seems that nobody really knows if China’s nascent legal industry will take a big hit or not. Certainly not the best news for the likes of Lexis Nexis who were trumpeting their new information services to China late last year. We don’t envy any LN salesperson working in the PRC market at the moment.
From: Chinese Law Discussion List [mailto:[email protected]] On Behalf Of Hilary K Josephs
Sent: Monday, January 12, 2009 1:22 AM
To: [email protected]
Subject: attorney hiring
Dear colleagues:
Perhaps this inquiry is a bit premature…Do you have any sense if the current economic crisis is adversely affecting opportunities for qualified U.S. law grads in China? Every year I am approached by students who express an interest in working in Asia. It is hard to tell if U.S. firms will be seconding lawyers to Asia if they are not needed in the U.S., rather than make new hires. The Financial Times published an article about U.S. firms rearranging their practice groups, e.g., moving people from M & A to bankruptcy.
Best,Hilary
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Dear Hilary,
I would be surprised to learn that many US law firms were seconding their “spare capacity” lawyers in their China offices. This would run contrary to the trend of staffing offices of international firms in China primarily with Chinese nationals. Chinese lawyers are most likely to have practice experience on the ground in China. It’s China practice experience we find is a key requirement firms are looking for. All is not bleak for foreign lawyers in China. The expanding areas of Chinese law and regulation provide some opportunities for foreign lawyers. For example, IP is a rapidly expanding practice area with opportunities for foreign lawyers.
The global economic slowdown is reducing the demand for legal services in China—-provided by both international and PRC firms. The international law firms in China are responding in a similar manner to firms in the US and other developed markets. They are freezing salaries cutting bonuses, freezing hiring and, and some firms are laying off lawyers and staff. Most managing lawyers we talk to are taking a wait-and-see attitude, hoping to avoid drastic measures. Many commentators think that China will come out of this period more quickly than developed countries. We have not heard of any international firms closing their China offices. China continues to be considered a “must be” location for many firms. This view will be tested in the coming months.
Cordially,
David
David Atnip | JD, MBA | Business Development Director | LAWINN
—We bring LAW people IN—
Unit 1602, Universal Mansion, 168 YuYuan Road, Shanghai 200040
T (8621) 6249-2300 | F (8621) 6249-4418 | M 138-0180-7177
LAWINN Beijing
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T (8610) 5869-4748 | F (8610) 5869-6445
