China's appetite for resource investments is luring more Canadian law firms across the Pacific in pursuit of that business.
Legal recruiter Warren Smith, B.C. managing director of the Counsel Network, said Vancouver-area firms are looking to recruit lawyers that have China-oriented skillsets as they look to expand their Chinese business.
"[In the last year or two] it's gone from being just a passive conversation, with people saying 'Hey, this is an interesting thing we should be thinking about in the market' to firms saying, 'I'm looking for a lawyer who can assist us with Chinese client matters.'"
Smith added that the recruiting trend is mirroring a resurgence in Canadian firms setting up offices in China. He said that, unlike a wave of Canadian law firms that set up in China in the 1990s, law firms in this country have now found a business model that works: landing Chinese clients.
Originally, he said, Canadian firms had focused on selling services to Canadians doing business in China.
Gowling Lafleur Henderson LLP(Gowlings) has recently upped its Chinese market presence. The national Canadian firm officially opened a Beijing office last November.
Gowlings Vancouver partner Brett Kagetsu said the firm has been sending delegations to China since the 1980s but has seen a strong uptick in China-related business opportunities over the past four years, which has been driven by China's interest in resources.
"As we've see that rapid growth in the past few years, we've certainly recognized the opportunity for us to be in China, to be part of that as they look outward and look in Canada in particular."
Kagetsu said that Gowlings' Chinese office thus far has a "modest presence": one Canadian layer and an assistant. He noted that, because the firm isn't licensed to practise law in China, the Beijing office focuses on client relationships and business development. Legal services are delivered in Canada.But he added that while Gowlings is expanding "cautiously" into China, the firm is confident that investing in the new office will pay off.
"There's still a huge optimism as to the growth and continued migration of the lower class to the middle class [in China] and consumerism in China."
National firm Blake, Cassels and Graydon LLP (Blakes) has had a Beijing office for 14 years. Debra Finlay, a partner in Blakes' Vancouver office, said it's the only Canadian firm that can boast the consistent presence of a representative office in China for that long.
She said Blakes opened its office with "a couple of key lawyers" and has since grown to four legal professionals and two staff. Services are "augmented" with support from the firm's Canadian offices.
What kept Blakes in China when other Canadian firms left?
"I think keeping a focus," Finlay said. "Seeing China – or Asia – as a market that would continue to grow in importance and continue to grow in importance as a legal market for us."
She said that investment has paid off: "Blakes' China practice certainly is seeing growth."
Finlay added that Blakes isn't rattled by reports of a cool down in China's economy.
"We hear the media reports. But we're seeing consistent activity, so we're sticking with the plan and continuing to work on providing good services to the companies that we are working for to expand the opportunity."
