The global venture of domestic companies is expanding in scope, scale, complexity and geographic coverage. This has provided an impetus for law firms to also expand.

Beijing-based Gaopeng & Partners, for example, has increased their international offerings by joining the ALFA International, a global legal network comprised of 133 international law firms (85 are US based firms).

"Joining global legal alliances is an effective way for PRC firms to strengthen their international practice," said Wang Jun, partner of Gaopeng. "It provides us a good platform to gain knowledge about the global market and the demand of foreign clients, and also rapidly increases our connections in many overseas markets where there is a member firm of the network."

The firm already has an established international trade and WTO practice headed by partner Wang Lei. Wang Jun expects the firm's membership in ALFA International to beef up the firm's international business practice capacity.

In recent months, a number of other domestic firms have also broadened their international expertise and increased their connections abroad by either entering strategic alliances with foreign firms or opening branch offices overseas.

Dacheng, for example, has opened three new offices overseas so far this year. The most recent one is its Los Angeles office, which has entered into a strategic alliance with US firm Matthews Wilson and Hunter. Zhonglun W & D has extended its geographical reach to the Middle East by establishing an office in Riyadh. King & Wood has merged with Arculli Fong & Ng after a long-standing association, and has become the first PRC firm to offer dual capability (Hong Kong/PRC law) for its clients.

The focus on growth in international business and overseas service capacity can hardly be described as a new phenomenon, but there has been a recent shift in the main driving force behind the expansion.

A couple of years ago, when the market was in its heyday and FDI was still growing fast, the main reasons for domestic firms to develop business relationships with foreign counterparts included attracting more referral work, a marketing strategy or learning from international peers. Today, however, PRC firms are taking more initiatives in fostering relationship with firms in other jurisdictions. An emerging driver of the prevailing trend is the needs of their domestic clients.  

Guantao, for example, opened a Hong Kong office earlier this year, reporting that more of its domestic clients now have operations in Hong Kong and use it as a bridge to other markets, so they have increasing need for PRC legal support in Hong Kong. Meanwhile, Winners law firm, a Tianjin member of an international network named Lawyers Associated Worldwide (LAW), recently helped one of its clients investing into Brazil by cooperating with the network's member firm in Brazil. Simon Bai, a partner of Winners, noted that the network enables the firm to find and work cost-effectively with a competent and reputable local legal advisor in foreign jurisdictions. The membership in the LAW, Bai said, adds value to the firm's services and benefits the clients.

"Domestic clients' need for legal services in overseas jurisdictions, when they invest into foreign markets, has become an increasingly important driver for PRC firms to join international alliances," said Bai. But he also noted that joining global legal networks wasn't a silver bullet for every firm. "To be able to join an international alliance and leverage the resources of the alliance, PRC firms must have an established international business group and proven ability to work with clients and firms from developed markets."

As the country's companies continue to grow bigger, more sophisticated and become more globalised, many segments of the legal services market will see huge growth potential. Inevitably, firms will have more reasons to raise their international profile and expand their presence beyond the home market to provide better services to their clients, wherever they are.

Related stories:

• King & Wood completes merger with Arculli Fong & Ng
• Dacheng breaks into the US market
• Zhonglun W & D announces Middle East launch
• Guantao establishes its first international location in Hong Kong