In 2025, after a two-year adjustment following the COVID-19 pandemic, China’s legal market entered a phase of stable sentiment but with increased differentiation. In areas such as individual partner moves, law firm geographic coverage, and institutional consolidation, the market exhibited more rational allocation of existing resources and cautious growth in investment; the previously prolonged contraction trend slowed significantly.
At the individual partner level, the overall scale of partner movement declined compared to the previous year, but the lateral destinations and talent structure remained stable. Partner mobility was still primarily driven by lateral moves among Chinese law firms, and the dispute resolution practice continued to attract the most talent in mainland China. The Hong Kong stock market has been highly active in the year, directly impacting talent allocation in this area and leading to a rebound in capital markets partner movements; it also spurred investment and talent turnover in related transaction areas.
In terms of law firm geographic coverage, the pace for foreign law firms in China slowed significantly compared to 2024, with a decrease in the number of office closures. Simultaneously, the number of new offices set up by foreign law firms rebounded, and the number of Sino-foreign joint operations officially approved in China also increased again. Chinese law firms continue expanding both domestically and internationally, steadily deepening their international networks, particularly around key local jurisdictions in Asia.
Inter-firm consolidation in the Greater China region fully reflects the current structural trend in the global legal arena, with landmark pan-Asia splits and tie-ups. Co-operations and alliances between Chinese and foreign law firms remain active and deepening: Chinese firms are committed to building cross-border abilities, while foreign firms continue their localisation efforts to enhance market influence and service capability among local clients.
Looking ahead to 2026, market adjustments will become more rational and stable. Changes in individuals, institutions, and co-operation models will aim for better collaboration and efficiency, moving towards more sustainable development.
To explore the full report, including an in-depth analysis of lateral moves, openings and closures, and mergers and alliances, click here.
