Linklaters unveiled a long-awaited China strategy this week that will see a number of partners break away from its Shanghai office to establish their own firm. Though the terms of the Shanghai Free Trade Zone will require the new practice to remain completely separate from any foreign player for at least three years, a joint venture between the two firms after that time could see Linklaters become the first Magic Circle firm to establish a Chinese law practice in the PRC.

‘Best friends’ arrangement

It is understood that around three Linklaters partners will make the initial break, to be followed by at least seven PRC partners from the Shanghai office within the next few months. Though the new local law practice will be completely separate from Linklaters, a ‘best friends’ arrangement will exist between the pair during the mandatory three-year wait. Linklaters will continue to offer foreign law advice out of its Beijing and Shanghai offices during this time.

Magic Circle first

There is no guarantee of a Linklaters JV in China once the waiting period has elapsed. At that time, the new firm could opt to merge with another firm, or to remain independent. However, should the JV go ahead, Linklaters’ will become the first ever Magic Circle firm to practice Chinese law. 

Source: The Lawyer