Pinsent Masons doubles down on China with Shenzhen firm joint venture

Pinsent Masons has secured Chinese government approval for a joint venture with Chinese law firm China Commercial Law Firm in the Qianhai Free Trade Zone in Shenzhen, one of the country’s fastest-growing technology hubs.

The two firms will retain their own names and offices, but will leverage each other’s international and local platforms to jointly advise clients.

The partnership - to be known as the China Commercial Law Firm and Pinsent Masons LLP, Qianhai Joint Operation Office - will expand Pinsent Masons’ offering. Under Chinese regulations, foreign law firms cannot practice Chinese law.

Pinsents opened an office in Shenzhen on 22 January, its fourth location in Greater China. Led by the firm’s China head Kanyi Lui, key focus areas include energy, infrastructure, M&A and capital markets.

Global senior partner Andrew Masraf said the move would strengthen the firm’s ability to support clients operating across major international corridors.

“In particular, we are well positioned to continue to take the opportunities created by the flow of work between China and the Middle East, especially in the energy and infrastructure sectors,” he said.

“We see this as a great driver of work for us across our global network and really plays to our strengths as a firm.”

Big Law takes different paths on China

The venture comes in the wake of a multi-year exodus of US firms from China, with Paul Weiss, Kirkland & Ellis, Milbank, Skadden, K&L Gates, Cleary and other major Big Law players among those scaling back operations.

Much analysis of the retreat has pointed to intensified US-China geopolitical tensions, tightening Chinese regulations and a lack of profitability as key drivers.

By contrast, many UK firms have maintained their presence in the jurisdiction. Prime minister Keir Starmer’s visit to China in January - the first by a British leader in eight years - has also been interpreted as a potential sign of improving diplomatic and commercial ties.

Despite Big Law’s lack of confidence, Shenzhen in particular has proved attractive for some foreign firms, with Law.asia reporting that Perkins Coie and offshore firm Appleby were approved to open offices last year.