Law firm looks to open second branch

Global law firm DLA Piper Rudnick Gray Cary will soon apply to authorities to open its second office in China to meet expected demand bought about by the rapidly expanding economy.

"We are considering setting up another branch in China - in Beijing to be exact. We expect our application to be approved by the Chinese authorities this year, so that we can prepare for further business expansion in the future," Roy Chan, chief representative of DLA Piper Rudnick Gray Cary (Shanghai), said recently.

Chan revealed that his firm will file its application soon, and expects positive feedback within six months.

Before 2002, foreign law firms were restricted to a single office in the mainland, but the Ministry of Justice changed the rules that year to allow those overseas law firms which have been in China for more than three years to open a second branch.

By June this year, DLA Piper Rudnick Gray Cary's Shanghai office will meet that requirement and be allowed to branch out.

DLA, a law firm based in the United Kingdom but with a presence in Asia and continental Europe, sharpened its market edge by merging with its counterpart, US-based Piper Rudnick LLP, earlier this year.

"After merging with Piper Rudnick LLP, market demand from potential US clients could pick up in Asia and in China particularly. In fact, the deal offers us a good chance to broaden our client base," Chan said.

The UK law firm announced the merger late last year, which took effect on New Year's Day, creating one of the largest law firms in the world and the only one with more than 1,000 lawyers on both sides of the Atlantic.

The UK-US law firm is now offering legal services in China for multinationals looking to tap the local market and those ambitious local companies with eyes on the global marketplace.

"We not only represent foreign clients, but also their local counterparts who are seeking global business expansion," Chan said.

At present, foreign firms account for 60 per cent of DLA Piper Rudnick Gray Cary's annual income, with services provided for local firms making up the remaining 40 per cent.

But Chan hopes his firm can strengthen its co-operation with local Chinese clients, and added that as China's economy continues to expand, so will his company's business opportunities.

"As China opens more of its industrial sectors, local companies are forced to take on global competition. It is inevitable that more legal disputes will arise, and this is where we come in," Chan said.

Source: China Daily