Made
in China
Responding
to growing client demand, one of the state's largest law firms
has stepped into the Chinese market through a unique joint venture
with three other law firms.
Last
February, Michael Best & Friedrich LLP established a presence
in Beijing and Shanghai in conjunction with two other U.S. firms
and one from Canada.
That
move has been described as a unique opportunity to meet the needs
of existing clients while reaching out to new clients. Business
clients have approached the firm for help with developing business
relationships in China and dealing with the laws pertaining to
the exporting of products and materials to China.
"We've
noted for the past few years that with increasing frequency our
clients throughout Wisconsin, as well as Illinois, had come to
us with questions regarding how to either invest directly in plant
capacity in China or to partner with businesses located in China,"
said Thor Lundgren, partner at Michael Best.
Lundgren
was involved in developing the China Alliance, which brought Michael
Best together with Armstrong Teasdale LLP; Blake, Cassels &
Graydon LLP; and Butzel Long. Armstrong Teasdale established an
office in Shanghai in 2000. That firm has about 230 lawyers in
nine offices worldwide.
Toronto-based
Blake, Cassels & Graydon came to the joint venture with an
office in Beijing. The firm also has about 500 lawyers in five
offices across Canada and in London.
The
China Alliance has used the offices in Beijing and Shanghai to
provide a presence that the four firms could not have achieved
on their own. Until now, China's Ministry of Justice has limited
foreign law firms to one office within the country. By consolidating
the four firm's operations into the joint venture, they were able
to maintain a presence in both Shanghai and Beijing.
Neither
Butzel Long, a Michigan-based firm with more than 200 lawyers
in eight offices in Michigan and Florida, nor Michael Best had
offices in China. All four firms are part of an international
law firm network called Lex Mundi (Law of the World). The network
connects 161 firms in 99 countries.
Given
that all four firms had a connection through Lex Mundi, it gave
them a greater sense of comfort coming together to form the China
Alliance. Each firm within the alliance will remain independent
in its practice of law. However, the venture will allow each of
them to share knowledge and resources.
"One
of the nice developments is that we've discovered that the four
firms are able to pool resources on very significant projects
for clients," Lundgren said. "That's gone beyond something
we anticipated."
As
with any business venture, unforeseen challenges can arise. Shortly
after launching the China Alliance, the SARS illness broke out
with a significant showing in China. Lundgren acknowledged that
for about two months, activity in China dropped off. However,
it has rebounded.
"Since
then the level of activity has exceeded our internal forecasts,"
Lundgren said. "Right now, it looks like a really good decision."
The
firm anticipates continued growth in the level of business both
with regard to advising clients about business ventures in China
and advising Chinese businesses about U.S. law requirements.
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