More US law firms are closing their offices in Shanghai as a dearth of financial activity and depressed business sentiment force them to reassess their mainland China presence.In recent months, US firms Sidley Austin, Perkins Coie, Latham & Watkins and Orrick have all closed or said they will close their Shanghai offices, adding to the departure of Weil and Akin Gump from Beijing.

International companies and professional services firms have struggled to navigate China’s shifting business environment following the Covid-19 pandemic and have been affected by deteriorating relations between Washington and Beijing.

In Shanghai, home to China’s biggest stock market and the country’s financial centre during an era of growing cross-border activity in the 2010s, the impact has been particularly acute for the legal sector.