DLA Piper is not souring on the China market despite escalating geopolitical tensions and a security clampdown in Beijing, according to the law firm’s leader Frank Ryan.
“We are very comfortable every place we do business,” Ryan said in an interview. “We don’t see that as any unnecessary risk in terms of the work we do for our clients and being global. “
Global law firms and many of their corporate clients have been caught in the middle of rising tensions between the US and Chinese governments. That has prompted some firms to shift Asia operations to Singapore and other neighboring countries.
DLA Piper has roughly 40 attorneys in China and Hong Kong, according to the firm’s website. It operates offices in the Chinese capital of Beijing, as well as in Shanghai.
The Biden administration in August ordered limits on investments in critical technologies in China. Beijing’s new data security regime gives President Xi Jinping’s administration the power to shut down or fine companies that leak or mishandle sensitive information.
Dentons said in August it was separating from its China operation in response to the law. The decision came after US consulting firms Bain & Company and Mintz Group were caught up in investigations from the China government.
“We take data privacy very seriously,” said Ryan. Still, he noted that international companies are doing “an immense amount of business in the country” and that cross-border deals between the US and China haven’t stopped.
“Obviously we need to be mindful of what’s happening in the US and China,” he said. “But at the macro level, China and the US are still immense trading partners. Yes, there are limitations now, yes we’re getting into issues with technology.”
On Wednesday, Ryan was reelected to a second four-year term as chair of DLA Piper’s America’s division.
DLA Piper is among the largest law firms in the world, with some 4,500 lawyers and nearly $3.7 billion in gross revenue last year.
The firm is known for a high-volume corporate practice that typically advises on deals below $500 million in value. DLA Piper’s lawyers have advised on 191 M&A transactions worth about $16.6 billion in 2023, according to Bloomberg data.
The firm in August advised Hong Kong private equity firm Templewater in its acquisition of Knight Auto Precision Engineering Pte Ltd, a Singapore-based firm that manufactures components for semiconductor testing and assembly.
Economic headwinds and regulatory pressures have helped contribute to a slow global deals market. The value of M&A transactions during the third quarter reached $777.3 billion, down 14% from the same period last year.
