The US-founded law firm Dechert is considering closing its offices in Hong Kong and Beijing, becoming the latest foreign company to downsize its operations in Greater China. According to two informed sources, the prolonged downturn in capital markets and the escalation of US-China tensions are the main reasons.
According to the firm's website and one of the sources, Dechert's Hong Kong office has more than 20 employees, including 14 lawyers and 4 partners. The Beijing office has only 3 lawyers.
The global law firm's website does not list other offices in the China region.
Some affected employees were notified earlier this month about the potential office closures. These sources requested anonymity because they were not authorized to speak to the media.
The firm, which has around 1,000 lawyers globally, is currently in discussions with several employees in Hong Kong and Beijing, especially lawyers, about possibly relocating to Singapore.
If the decision to exit China is finalized, Dechert's operations in Asia will be limited to Singapore, where it has 14 lawyers, including 6 partners.
It remains unclear when the office closures would take effect and whether the firm has begun to notify clients of this decision.
Dechert's representatives in the US did not respond to Reuters' requests for comment.
This move comes as more US and other global law firms are reevaluating or reducing their presence in China due to increased pressure on foreign enterprises, economic uncertainty, sluggish deal-making, and geopolitical tensions.
