Firms 'scramble' for Shanghai offices as China looks at rules

Senior Ministry of Justice officials in China have pledged to take up continuing concerns over practice restrictions on English firms with offices in the country.

The move follows a visit by Law Society President David McIntosh to China.

In a meeting with the ministry, he focused on the development of law firms with international capabilities in China and pushed the issue of allowing foreign lawyers to go into partnership with local lawyers.

He also met English firms, where discussions centred on regulations introduced this year following China's accession to the World Trade Organisation, and relaxation of the 'one-office' rule for foreign practices.

Mr McIntosh said there are 'great opportunities for co-operation between the legal professions of China and England', and hoped the time would come when Chinese and foreign lawyers could work in real co-operation as partners.

Terence Grady, a partner at Herbert Smith's Beijing office, said: 'For those firms with a presence in China, the new regulations just require us to go through the formalities of locating documents and re-registering with local justice departments.

'The Ministry of Justice has said that when all foreign firms have completed this procedure, they will publish detailed regulations concerning firm's opening new offices.'

Foreign firms may only have one office in China, which must be based in Shanghai - the commercial capital - Beijing, the political capital, or in Guangzhou, where Masons and Stephenson Harwood are based.

Both Melissa Thomas, a partner in the Beijing office of Freshfields Bruckhaus Deringer, and Mr Grady confirmed their firms are considering opening Shanghai offices if the restrictions are relaxed.

Freshfields already has an associated office there through its German mergers.

Matthew Durham, an assistant in Simmons & Simmons's Shanghai office, said he was aware of a number of Beijing-based firms 'scrambling to establish second offices in Shanghai'.

He said Simmons may set up a practice in Beijing, 'especially with the Olympics coming up'.

Andrew Towler