US law firm Skadden to close Shanghai office amid changing market conditions

US law firm Skadden, Arps, Slate, Meagher & Flom LLP has decided to shut down its office in Shanghai, China, Reuters reported.

The firm attributed this move to evolving market dynamics that have prompted it to reconsider its strategy in the region. “Shifting market dynamics have led us to the decision to begin winding down our operations in Shanghai and rescale our China corporate practice,” Skadden said. The firm did not specify a closure timeline but indicated plans to phase out its operations gradually.

Despite the Shanghai closure, Skadden emphasized its commitment to maintaining a strong presence across Asia. The New York-headquartered firm, which employs about 1,700 lawyers globally, has offices in Beijing and Hong Kong and three additional locations in the region. It will continue to handle its China-related business from these offices

According to a source familiar with the matter, Skadden will also downsize its corporate practice team across China. The firm currently lists approximately 20 lawyers at its Shanghai office. The source mentioned that some of these lawyers would be offered opportunities to relocate to other Skadden regional offices. The two partners connected to the Shanghai office, Yuting Wu and Haiping Li, will be affected by the move. Wu will transfer to Beijing, while Li, who has operated between Shanghai and Hong Kong, will continue her work from the Hong Kong office.

Skadden’s Shanghai office focused on a range of corporate legal services, including cross-border mergers and acquisitions, capital markets transactions, and corporate finance.

According to Reuters, this decision aligns with a broader trend of US law firms re-evaluating their presence in China amid ongoing geopolitical tensions, regulatory scrutiny, and economic uncertainties. Over the past two years, several major US firms have reduced their operations in China due to muted deal activities and increasing challenges foreign businesses face.