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The logo of law firm Weil, Gotshal & Manges LLP is seen outside of their office in Washington, D.C., U.S., August 31, 2020. REUTERS/Andrew Kelly 

 

Weil, Gotshal & Manges has become the latest U.S. law firm to retreat from the Chinese market, saying Wednesday it is moving towards ending its presence on the mainland.

The law firm confirmed to Reuters that it closed its Beijing office on Dec. 31 and is "engaged in discussions on the office in Shanghai with a view to consolidating its Asia operations" in Hong Kong.

"We will be working out the details in the coming months, but we remain dedicated to our award-winning Asia practice and to providing top service to our clients in the region," a Weil spokesperson said in a statement.

The spokesperson did not say whether Weil laid off its Beijing staff or how many employees it had there. The firm's website now lists six employees, including one partner, in Shanghai, although two of them are also members of Weil's Hong Kong office.

Weil has more than 20 lawyers and other employees in Hong Kong, according to its website.

Another U.S. law firm, Orrick, Herrington & Sutcliffe, said last week that it will consolidate its Chinese operations in Beijing after the lease on its Shanghai office expires in July.

U.S. and international law firms have pulled back from the Chinese market amid growing pressures on foreign businesses there and converging economic and geopolitical challenges.

New Chinese government rules on data privacy and cybersecurity were among the reasons cited by global law firm Dentons last year as it ended its combination with Chinese law firm Dacheng, an 8,000-lawyer firm that accounted for its entire presence in mainland China.

Other firms have cited market conditions in announcing cuts or office closures in the country. UK-founded Linklaters in September said it was laying off 30 China-based lawyers due to the country's "prolonged" economic downturn, which has brought a drop-off in transactions and deal activity requiring legal advice.

U.S.-founded law firms Akin Gump Strauss Hauer & Feld, Latham & Watkins, Perkins Coie and Proskauer Rose have also closed at least one of their China offices since June, according to media reports.

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