City calls for fair treatment as HK firms eye growing business opportunities in country

Hong Kong law firms could soon be permitted to open offices in Taiwan following a campaign by the city's law society to encourage fair treatment of foreign outfits in the country.

Firms based in Hong Kong are not currently allowed to launch in Taiwan or advise on Taiwanese law, despite an absence of such restrictions on firms from the UK and US.

"In Taiwan we are treated differently because of the sovereignty issue," Hong Kong Law Society president Ambrose Lam told Legal Week. "We can't open a firm there and they don't have any mechanism to register us.

"We want to set up there. Previously we didn't need to, because there weren't many business opportunities, but nowadays mainland enterprises are going to do business in Taiwan. They have signed agreements – there will be a lot of economic activity there. 

"At the very least, we want them to allow Hong Kong law firms and Hong Kong lawyers to provide legal services in respect of Hong Kong law on the ground."

To push for change, Lam has written to Hong Kong's Department of Justice, which is now looking into the issue. He said the next step would be to approach the World Trade Organisation – which both Taiwan and Hong Kong are party to – to appeal for fair treatment. 

Taiwan's legal market is small and competitive, and typically attracts foreign lawyers owing to high volumes of intellectual property litigation and technology-related work. International firms with a presence in the capital of Taipei include Baker & McKenzie, Jones Day, K&L Gates and Orrick Herrington & Sutcliffe.

Commenting on the possible influx of Hong Kong firms, CT Chang, a partner at Taiwan firm Lee & Li, said: "Hong Kong firms would be likely to bring their own clients, and it would be difficult for Taiwanese lawyers to compete with them. 

"What if the Hong Kong firms are aggressive and hire good local lawyers, and then lay hands on the local clients? This [would be] a threat to Taiwanese lawyers. 

"It's good to drive and open the market, but the worry is that the Taiwanese service industry isn't that well prepared."