China: Foreign firms restricted

The Chinese government released a memo recently which calls for a crackdown on foreign law firms operating in China and involved in what it labels as “illegal” activities which include hiring large numbers of Chinese lawyers, drafting contracts according to Chinese law and engaging in negotiations regarding investments, mergers and acquisitions.

The China Confidential blogger sees the move as part of a larger governmental backlash against the perceived foreign threat to its rule, while Dan Harris at China Law Blog looks towards disgruntled local competitors and emphasizes that current restrictions on foreign law firms in China are far from draconian.

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