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Announcement and Details
On Wednesday, U.S. law firm Dechert announced plans to close its offices in Beijing, Hong Kong, and Chicago later this year. The Philadelphia-based law firm did not provide specific reasons for these closures or details about the future of its lawyers and staff in these locations.
Current Staff and Locations
According to Dechert’s website, the Chicago office houses nine lawyers and patent agents, the Hong Kong office has 14 lawyers, and the Beijing office has three lawyers.
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Asia Strategy Shift
Last week, Reuters reported that Dechert was contemplating closing its Hong Kong and Beijing offices to consolidate its Asia presence in Singapore, a plan the firm confirmed on Wednesday.
Chicago’s Legal Market
Chicago is a prominent legal hub in the United States, home to several of the nation’s largest and highest-grossing law firms, including Kirkland & Ellis, Baker McKenzie, and Sidley Austin. Dechert established its Chicago office in 2012 with three securities litigators. Since then, the office has managed litigation, investigations, finance, and intellectual property cases.
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Recent Office Closures and Market Trends
Other law firms have recently opened offices in Chicago, including Armstrong Teasdale, Cooley, Crowell & Moring, Davis Wright Tremaine, Nelson Mullins Riley & Scarborough, Norton Rose Fulbright, Venable, and Willkie Farr & Gallagher.
Dechert’s Global Presence and Financial Performance
Dechert’s website lists 20 offices worldwide, including the three slated for closure. The firm’s headcount decreased from 973 lawyers in 2022 to 957 in 2023. The American Lawyer reported that Dechert generated approximately $1.3 billion in revenue last year.
Impact of Geopolitical and Economic Factors
Dechert’s decision reflects a broader trend among international law firms reducing their presence in China amid growing pressures on foreign businesses, economic uncertainties, muted deal activities, and geopolitical tensions. New regulations on data privacy and cybersecurity have also influenced these decisions. Last year, global law firm Dentons ended its combination with China’s Dacheng, an 8,000-lawyer firm, citing similar reasons.
Broader Implications
Several other large U.S. law firms have announced closures or scaled back their operations in China since last year, navigating the complex and evolving landscape of the world’s second-largest economy.
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