Will Law Firms in Asia Survive the Industry's Pursuit of a New Identity?

In the relentless pursuit of higher profits and inclusion in the "Global Elite," many international law firms have restructured their operations, often at the expense of their Asia practices. Over the past five years, numerous firms have downsized or withdrawn from key Asian markets, prompting questions about the future viability and identity of their regional offices.

The Retreat from Asia

The aggressive expansion of global law firms into Asia, particularly in China and Hong Kong, has seen a significant reversal. Since June 2023, at least ten prominent U.S. law firms have retreated from the Greater China region, citing factors such as geopolitical tensions, declining deal activity, and high operational costs. 

Singapore has emerged as a preferred hub, offering a strategic location for accessing work across Asia. However, firms face challenges in generating profits due to market pressures and clients' reluctance to pay premium rates.

As Giji John, a partner at Orrick, noted, "Asian clients are just not accustomed to paying New York private equity rates".

Regulatory Challenges

In India, recent regulatory changes have added complexity for foreign law firms. The Bar Council of India now requires foreign lawyers to notify the council before their arrival, disclose client details, and adhere to a 60-day annual stay limit. While these measures aim to protect domestic legal interests, they may deter foreign firms from entering the Indian market, potentially hindering international legal collaboration.

Embracing Innovation

Despite these challenges, some law firms in Asia are leveraging innovation to adapt and thrive. The Financial Times' Asia-Pacific Innovative Lawyers Awards 2025 highlighted multiple firms and individuals driving change. 

For instance, Maki Kadonaga of Anderson Mori & Tomotsune won the "Individual Intrapreneur" award for pioneering knowledge management in Japan's legal industry, improving resource access and reducing routine task time by 15%.

Similarly, firms like Ashurst and Gilbert + Tobin have rapidly adopted generative artificial intelligence to enhance productivity and client service. Gilbert + Tobin's CEO, Sam Nickless, even developed a personalised GPT to streamline internal collaboration.

Strategic Partnerships and Expansion

Some firms are forming strategic partnerships to strengthen their Asia presence. Eversheds Sutherland's partnership with King & Wood Mallesons facilitated 700 cross-referrals across 80 jurisdictions, demonstrating the potential of collaborative approaches.

Additionally, firms like Rajah & Tann are expanding their footprint in China, with plans to open a new office in Shenzhen, marking a significant return to the Chinese market after 21 years.

The Path Forward

As global law firms continue to pursue higher profits and elite status, their Asia practices must navigate a complex landscape of market pressures, regulatory challenges, and technological advancements. Success will depend on their ability to adapt, innovate, and form strategic partnerships that align with regional needs and expectations.

The transformation of the legal industry in Asia is not just about survival but about redefining identity and value in a rapidly changing global context.

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