Cleary Gottlieb Steen & Hamilton is shutting down its Beijing office by July 2025, marking another high-profile exit from mainland China by a top US law firm.
Cleary’s departure from China follows a growing trend of Western legal giants scaling back their Chinese operations amid geopolitical tensions, economic cooling, and regulatory challenges.
The New York-based firm confirmed it will merge its Beijing team with its Hong Kong office, leaving just two Asian bases in Hong Kong and Seoul. Cleary’s Beijing outpost, opened in 2006, currently houses two partners (split between Washington DC and Hong Kong) and five other lawyers.
A spokesperson from the firm emphasized the firm remains committed to the region but aims for “more efficient” operations through consolidation.
The China Exodus
Aleast 16 US firms have closed Chinese offices since 2024, including:
- Milbank (Beijing)
- Paul Weiss (Beijing)
- Skadden (Shanghai)
- Weil Gotshal (Shanghai)
- Sidley Austin (Shanghai)
- Morgan Lewis (Shenzhen, opened less than two years ago)
- Fenwick & West (Shanghai)
- Dechert (full China exit via Beijing/Hong Kong closures)
Am Law 100 firms have slashed their mainland China lawyer headcount by 25 percent since 2023 (from 569 to 424), with a 35 percent drop over five years.
But UK-based law firms like Linklaters and Dentons have also departed China and the trend is by no means limited to US Big Law firms.
Why the retreat?
- Geopolitical friction: Trade disputes, data security concerns, and Trump-era tariffs loom large.
- Economic slowdown: China’s cooling economy has dried up deal flow for foreign firms and become less attractive for the major firms.
- Talent wars: Local lawyers trained at Western firms increasingly join Chinese competitors or job-hop frequently to newer firms.
- Regulatory hurdles: Stricter data privacy laws and compliance complexities.
As Robert Bata of WarwickPlace Legal notes, firms now view Southeast Asia (Singapore, Indonesia, Malaysia) and Japan as safer growth bets despite lingering market barriers. Meanwhile, remaining firms like Sidley and Morgan Lewis are doubling down on Beijing/Shanghai/Hong Kong hubs while trimming satellite offices.
Cleary’s pivot mirrors peers like WilmerHale and Orrick, which consolidated China teams into single offices. With Hong Kong absorbing much of this redirected energy, the city remains a critical – if increasingly crowded – beachhead for Western law in Asia.
