Milbank has announced that it will close its Beijing office by the beginning of 2025, becoming the second U.S. law firm to exit China this week. The decision follows an earlier confirmation by Paul Weiss that it will also shutter its Beijing office at the end of this year.
A spokesperson for Milbank confirmed to China Business Law Journal that the firm will continue its operations in Asia through its offices in Hong Kong, Seoul, Singapore, and Tokyo. However, details about the future of the Beijing office staff, including the handling of client matters and potential transitions, have yet to be revealed.
Milbank’s Beijing office, which has been operational for 18 years, is currently led by Managing Partner Shepard Liu and two associates. Liu, who has been with the firm for over 15 years, has been instrumental in advising China’s major policy banks and has built strong relationships within the Chinese legal landscape.
Despite the closure of its Beijing branch, Milbank has reported strong financial performance on a global scale. In 2023, the firm’s revenue surged to USD 1.51 billion, marking a 17.8% year-on-year increase, its highest growth rate to date. Additionally, its profit per equity partner increased by 18.6%, reaching USD 5.11 million. The firm has highlighted its strong results in Europe, especially in Germany, as a key driver of its overall success.
In 2022, Milbank’s Hong Kong office underwent a significant transition, becoming a local law firm with the ability to practice Hong Kong law in addition to its international expertise. This move came after the office had previously operated as a registered foreign law firm, focusing primarily on English and New York law.
The closure of Milbank’s Beijing office follows a broader trend of U.S. law firms reevaluating their operations in China. On December 4, Paul Weiss also confirmed the closure of its sole office in Beijing. Over the past 18 months, 15 foreign law firms, with the exception of U.K.-based Eversheds Sutherland, have confirmed the closure of their offices in China. This marks a significant shift in the legal landscape as foreign firms reassess their positions in the Chinese market amidst evolving geopolitical and regulatory challenges.
Milbank’s exit reflects broader industry shifts as international firms navigate the complexities of the Chinese market. While U.S. firms continue to scale back their operations in China, many are focusing on strengthening their presence in other key Asian markets such as Hong Kong, Singapore, and Japan.
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