Skadden Follows US Firms in Shutting Down Shanghai Operations

Skadden, Arps, Slate, Meagher & Flom, a prominent U.S. law firm, announced on Friday that it will be shutting down its Shanghai office. This move is part of a broader decision to scale back its operations in China due to shifting market conditions, according to a statement released by the firm.

“Shifting market dynamics have led us to the decision to begin winding down our operations in Shanghai and rescale our China corporate practice,” the firm said, highlighting the challenging business environment that foreign companies are facing in the country. However, despite this decision, Skadden emphasized that it remains “committed to a strong presence across Asia,” where it continues to operate offices in Beijing, Hong Kong, and three other locations.

Per Reuters, Skadden’s decision follows a trend seen among several major U.S. law firms, which have been reassessing their presence in China over the past two years. A combination of economic uncertainties, limited deal activity, and rising geopolitical tensions between the U.S. and China have contributed to these firms downsizing or completely exiting the market.

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Among other U.S. firms that have made similar moves are Reed Smith, Perkins Coie, Dechert, Morrison & Foerster, and Sidley Austin, all of which have announced office closures in China since the spring, per Reuters.

Skadden, which employs about 1,700 lawyers globally and is headquartered in New York, has been a significant player in the international legal arena. While it has chosen to reduce its presence in Shanghai, the firm’s continued operations in other key Asian markets signal its commitment to maintaining a foothold in the region despite the challenges.

Source: Reuters