American law firm Mayer Brown’s 2024 split from its Hong Kong merger partner marked the largest demerger in the city’s history. The move signals a broader retreat by U.S. firms from Greater China, driven by fee pressure and a shifting competitive field. This change reverberates across the region’s legal market.

Mayer Brown’s decision followed a wave of exits: Latham & Watkins shuttered Shanghai to focus on Beijing, Weil, Gotshal & Manges closed Beijing and Shanghai, while Sidley Austin, Akin Gump and others pulled back. Together, about 20 U.S. firms have reshaped their footprints since 2020, reshaping client expectations.

The pullback stems largely from pricing gaps. Chinese law firms now employ dozens of former international lawyers, cutting overhead and matching local rates. U.S. partners charge $2,000 to $3,000 an hour, a premium that local firms can undercut. Firms are now selective, often declining IPO work that Chinese competitors can perform more cheaply.

With U.S. presence shrinking, many firms pivot to Singapore or reinforce data safeguards in Hong Kong. While China remains a key market, partners emphasize a thoughtful, value‑driven approach. The trend underscores a new equilibrium where U.S. firms compete on niche expertise rather than volume, reshaping the global legal economy.