The Law Society of Hong Kong has submitted a proposal for Hong Kong firms to be able to work in the new Qianhai Special Economic Zone by setting up joint ventures with law practices based in mainland China. Once these joint ventures are established, the firms would then hope to serve the whole of the People's Republic. But the proposal, if accepted, could take some years to come to fruition - not least because the Qianhai zone is still under development and is not expected to be ready before 2020. 

Liberalisation prospect

International firms are keen to see the proposal accepted. At the moment, foreign law firms are banned from advising on Chinese law from mainland China. But, since Chinese firms are allowed to practice in the US and Europe, the western legal community is hoping for some moves towards liberalisation. Paul Tan, managing partner of Baker & McKenzie in Hong Kong, PRC and Vietnam, told Legal Week that global legal firms would be able to meet international standards under the proposed approach. He added: 'The overall legal costs to the clients are also likely to be reduced. We will certainly explore any opportunity within the framework permitted by law.'

Vinson & Elkins shuts down Shanghai

Meanwhile US firm Vinson & Elkins is closing down its Shanghai office and basing Chinese operations in its Beijing office. The firm issued a statement saying it was consolidating the China practice into its Beijing and Hong Knog offices and will close Shanghai later in the year which may mean some lawyers losing their jobs.