Foreign Law Firms Set to Expand in China

February 28, 2002 | BY

clpstaff &clp articles

Recent regulations governing foreign law firms allow greater market access but also create ambiguity about the permitted scope of cooperative work with Chinese law firms and the possibility of foreign firms' giving direct advice on Chinese law.

By Huen Wong and Owen Cox, Simmons & Simmons

The PRC Ministry of Justice (MOJ) has indicated that WTO accession will result in three concessions for foreign law firms: removal of quotas limiting the number of law firms; removal of geographical restrictions on the location of representative offices; and withdrawal of the one representative office per firm rule. These concessions are contained in China's WTO accession Schedule of Specific Commitments on Services (the WTO Commitments) and are implemented by the new Regulations Regarding the Administration of Representative Offices of Foreign Law Firms in China (passed by the State Council on December 19 2001, and hereafter the Regulations), which were effective from January 1 2002. When we examine the Regulations, however, we see both that grey areas remain and that Beijing intends to closely regulate the activities of foreign law firms in China. It is hoped that soon-to-be drafted MOJ supplementing regulations will clarify the grey areas in favour of opening China's legal services market. With regard to China's WTO commitments, what can we make of the Regulations? And what is new in the Regulations?

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