City firms miss great haul of China as US practices cash in on licence roundNEW OFFICES: Three foreign firms with strong UK connections among 11 new names in ChinaCity firms have missed out completely in the annual round of licences to open offices in China, it has emerged.

The Chinese Ministry of Justice has granted 11 licences, five to US firms.

However, three licensees have close City links: Dutch firm De Brauw Blackstone Westbroek is a member of Linklaters & Alliance, Singapore firm Shook Lin & Bok is in a joint venture with Allen & Overy, while Frances Bureau Francis Lefebvre last month joined the network run by CMS Cameron McKenna.

The three City firms already have their own offices in China, Linklaters in Shanghai, and Allen & Overy and Camerons in Beijing.

De Brauw and Shook Lin are opening in Beijing, while Francis Lefebvre is setting up in Shanghai.

Linklaters partner Zili Shao said a Beijing office would prove useful, especially when it came to dealing with the government.

There will initially be a relatively small presence in Beijing, he added; Linklaters has 13 lawyers in its Shanghai office.Most City firms which wanted an office in China now have one; but some had a long wait.

Linklaters, for example, only received its licence in 1998.

However, there are still a few top international firms without a presence in China, such as Norton Rose and Ashurst Morris Crisp.Jonathan Goldsmith, the Law Societys international director, said he was hopeful that the remaining firms which want licences will get them in the near future.

He said the Society enjoyed very good relations with the Chinese authorities and is negotiating to continue the successful practical training scheme, which involves Chinese lawyers gaining experience in English law firms and chambers.The five new US firms in China are: Perkins Coie (which has chosen to open its office in Beijing), Dorsey & Whitney, Thacher Proffitt & Wood and Faegre & Benson (all Shanghai), and Perliss & Gross (Chengdu).The remaining licensees include the first Latin American and Middle East practices in China: Noronha Advogados of Brazil and Afridi and Angell of the United Arab Emirates.

The final licensee is Belgian firm Coppen Van Ommes Laghe & Faures.

All three will open in Shanghai.

Last year, Ince & Co and Barlow Lyde & Gilbert were the only two UK firms to receive licences out of 15 awarded.

Camille Jojo, head of Barlows Hong Kong office, said the market is looking quite promising, with China set to be the largest recipient of foreign direct investment.

Doug Markel, head of Freshfields Beijing office, said that with the country preparing for its accession to the World Trade Organisation, its an exciting time to be in China.Neil Rose