The World’s Biggest Law Firm by personnel count, Dentons, is pulling back from its operations in China in reaction to the country’s stricter regulations.
In an internal memo that was published with CNN on Tuesday, the company informed clients of the change this week.
Dentons’ China Division Becomes Separate Entity
According to Dentons, its China division will function as a separate legal company as of this month. Its Hong Kong practice would continue to be a part of Dentons without change.
The Chinese company will continue to work with Dentons as a preferred firm under the terms of its present local name Dacheng business operations.
According to Dentons, the restructure was done in response to new regulations and demands around capital control, governance, cybersecurity, and data privacy.
We will continue collaborating to serve the needs of our clients despite the change in our legal relationship.
According to a memo from Dentons, which describes itself as the largest law company in the world, it employs more people in more locations across more nations than any of its rivals.
More than 80 nations are home to the company’s 21,000 employees, 12,000 of whom are attorneys.
Dentons Reacts to China’s National Security Regulation
The definition of handling any documents, data, materials, or items related to national security and interests was added to China’s already comprehensive counter-espionage law in April, although Dentons did not go into further detail regarding the regulatory changes that led to its move. The action alarmed foreign companies operating there.
Additionally, Dentons’ choice is made at the same time as a campaign against foreign consulting firms. State security officials said in May that they had searched multiple Capvision offices; this was an advice network with operations in Shanghai and New York.
The declaration was made after Chinese authorities questioned staff members at the local office of consulting firm Bain and closed the Beijing office of US corporate due diligence company Mintz Group.
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