Orrick, fresh on its recent reported losses in Italy, has shut down in Shanghai and will redeploy most of its lawyers to its remaining Beijing office. It is also closing in Taipei, Taiwan, following the departure of its permanent lawyers to Baker Botts.
Weil Gotshal & Manges in contrast has announced the closure of its Beijing office and indicated it is reviewing its position in Shanghai. In the same vein, it is reported that Kirkland & Ellis has let go some 9 capital markets lawyers based in Asia. It is understood these are mainly in Hong Kong. Work for Chinese issuers has reduced, with the volume of Hong Kong IPOs declining 30% last year, impacting US firms there.
A year ago, The Bar Council of India published its new Rules for the Registration and Regulation of Foreign Law Firms in India, which lifted the prohibition on foreign lawyers working
in India. At the time, these were seen as a potential catalyst for the liberalisation of the country's legal sector. But little seems to have advanced in the past year.
There are issues that have slowed progress, including further definition of the Rules, the tax treatment of firms operating in India and the lack of progress on the proposed UK-India Free Trade Agreement. But reportedly international firms have been quietly readying themselves to make their moves when the time is right.
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