China lawyer headcount at the top 250 US law firms rose by almost 10% last year, as the region continues to grow in importance for international law firms.

The largest 250 US-based law firms by lawyer headcount – as compiled by The National Law Journal – added 194 lawyers to their China offices during the past year to reach a total of 2,249, while the total number of offices grew from 124 to 132.

Hong Kong and Beijing were the most popular markets, seeing lawyer headcount rise nearly 12% and 10% respectively, while Shanghai grew by 3%.

Among the group, Baker & McKenzie continues to have the largest complement of lawyers in Chinese offices with 269, followed by Mayer Brown with 203, DLA Piper with 140, Hogan Lovells with 111 and Reed Smith with 109.

Bakers boasts the largest number of lawyer in Beijing and Shanghai, and is tied with Mayer Brown for the largest Hong Kong office, with 170 lawyers. Hogan Lovells has the second-largest Beijing office with 24 lawyers, while Orrick Herrington & Sutcliffe has the second-largest Shanghai office with 25 lawyers.

China has long been viewed as the next big legal market, and the steady growth in lawyers and office openings provide further evidence that firms are willing to make long-term investments there. However, the market has yet to produce big profits, said Altman Weil consultant Ward Bower.

"I don't know of anyone making money there yet," Bower said. "The experience in a lot of these foreign offices of US firms is that it takes a lot of time and investment to make money. That's true even in London."

Bower also cited significant price competition as a key challenge, given that so many firms are trying to establish themselves. Nearly all US firms in China discount their legal services, he said, adding that many clients still prefer to use Chinese firms.

The National Law Journal is a US affiliate title of Legal Week.

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