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Dechert LLP is the latest BigLaw firm to announce it is dissolving operations in Beijing and Hong Kong, and the Philadelphia-founded firm also plans to close its 12-year-old Chicago office, a Dechert spokesperson told Law360 Pulse on Wednesday.

"Following a strategic review of our office locations, we have made the careful decision to close our Chicago, Beijing, and Hong Kong offices around the end of 2024," the firm said in a statement. "We remain committed to representing asset management firms, financial institutions, and companies on issues critical to managing their business and capital — from high-stakes litigation to complex transactions and regulatory matters."

Dechert To Close Offices In Beijing : Strategic Shift in Asia

In Asia, the firm will continue to serve clients out of its Singapore office, the spokesperson added. This move underscores Dechert's strategy to consolidate its presence in Asia by focusing resources on regions with the highest client demand and growth potential.

The firm declined to provide additional comment.

Global Presence and Local Impact

Dechert currently has around 20 offices worldwide. It has had a physical presence in Beijing and Hong Kong since 2008, with 14 attorneys now in Hong Kong and three in Beijing, its website states. The decision to close the Beijing office is part of a broader trend among international law firms reassessing their operations in China.

Since mid-2023, multiple law firms have reduced their presence in mainland China and Hong Kong. They cite a challenging macroeconomic environment driven by geopolitical tensions, laws and regulations that make it harder for foreign law firms to thrive, increased competition from large, high-quality Chinese law firms, rate constraints, and, in some cases, challenges in getting paid by clients.

Dechert To Close Offices In Beijing : Industry-Wide Trend

Weil Gotshal & Manges LLP, Orrick Herrington & Sutcliffe LLP, Perkins Coie LLP, and Latham & Watkins LLP all recently announced the closure of offices in Shanghai and Beijing. Meanwhile, Linklaters LLP and Kirkland & Ellis LLP conducted layoffs in the country, and Dentons shed thousands of lawyers in China when it separated from Dacheng.

Last December, Winston & Strawn LLP announced it would shutter its Hong Kong office before the Chinese New Year. The closure of Dechert's Beijing office adds to this growing list, signaling an industry-wide reassessment of the viability of maintaining offices in certain Asian markets.

Midwest Exit

Dechert expanded into the Midwest by opening its Chicago office in May 2012 with three securities litigation partners who came from Katten Muchin Rosenman LLP. There are now nine attorneys in Chicago, the firm's website shows. The closure of the Chicago office is part of Dechert's strategic review and realignment of its resources to better serve its clients.