Head East: Insights on Legal Practice in Asia

Head East: Insights on Legal Practice in Asia

Candidates frequently ask us how lawyers who have already made the move to Asia have found the experience. How is Asian practice different from legal practice in other jurisdictions? How will the move enhance my career prospects? To answer their questions, we asked 30 lawyers who have returned or relocated to Asia in recent years to tell us about their Asian practice experience. This article begins with a profile of our respondents, sets out their answers to the questions posed, and concludes with the advice they would give to those looking to make the move.

Profile of the Respondents

All of the interviewees are currently working as lawyers in Hong Kong, Beijing, Shanghai, Singapore, Seoul or Tokyo. The majority are in private practice at levels ranging from junior associate to Managing Partner. Four of the respondents are working as in-house counsel in financial institutions. Our respondents have an average of 5.5 total years of practice experience, with 3.5 years of practice experience in Asia on average. Twenty of the lawyers interviewed say they are “returning” to Asia, while the remainder considers his or her move a “relocation” from an overseas country of origin. Just over half of the respondents are native speakers of an Asian language and all but four of them speak an Asian language at some level and use it in the workplace.

Motivation for Move

The top motivation for the move was increased career opportunities.  Tied for runner up were the perception that the Asian economy is and will remain the global growth engine for the foreseeable future, and a desire to be closer to family or roots of origin.  Other reasons often cited included,  better work experience with early responsibility and client contact, increased money from tax savings and generous housing allowances, and better social opportunities.  For those lawyers who have relocated, the driver was often the desire to live and work abroad.

Asia is Different

The main practice difference cited was increased responsibility on deals, including more client contact.    As one respondent told us, “I am stretched above and below my level… the nature of my work ranges from partner to paralegal.”   The number two response given, particularly by respondents at the more junior level, was surprise at how difficult it can be to find a mix of work at any given time.  As one lawyer told us, “the work is market driven and associates must do whatever is hot at the moment.”   However, the more senior lawyers who have been in Asia for relatively longer periods of time believe that their work has been more diverse than it would have been in other jurisdictions.  The legal market in Asia is still developing compared with London and New York and practice focus shifts over time as new types of transactions and client needs come to the forefront.  Consequently,  many successful lawyers who have been in Asia for an extended period of time find that their practice experience has been much broader in scope than it would have been in London or New York where specialization is the norm.  And the ability to handle whatever deal comes through the door is prized here.   As one respondent noted, “being a ‘utility infielder’ is more valuable in Asia than it is in New York.”   Thus, less experienced lawyers are advised to keep an open mind and be ready to retool to keep up with market trends, or better yet, to stay ahead of the curve.

Practitioners in some specialty areas, such as tax and structured finance, told us that these are nascent areas in Asia and there is not enough work to keep them busy full time.  Practitioners in these areas have used this as an opportunity to branch out into other practice areas.

Changes Seen

When asked to describe how the Asian market has changed during his or her tenure, the overwhelming response was increased competition.  This competition takes several forms.  The region wide proliferation of international law firms through expansion or new entry to the market has increased competitive pressures.  In China local law firms are becoming increasing sophisticated enabling them to compete successfully in practice areas, such as inbound investment and fund formation that were once the province of the international law firms.  These changes have resulted in increased downward pressure on legal fees as the number of bidders grows faster than the volume of deals in many areas.

In China, the reverse diaspora of native mainland Chinese lawyers has created competition amongst the peer group and lawyers who are non-native speakers.   As one respondent put it, “10 years ago, any lawyer with the right pedigree and some level of Chinese could “make” it here.  Nowadays [in addition to native level language skills] the successful lawyers needs to also have strong technical skills, keep updated on legal fronts. . . and understand the client’s business very well.”

Another important change in the China market is the emergence of a China-centric way of doing things.  This is driven by an increase of Chinese clients in the client mix, more outbound activity, an increasing value placed on knowledge of PRC law, and an increased use of Chinese as the language of business.  As one respondent put it, “there is increasing sympathy for the PRC way of doing things.”

Challenges

Topping the list of challenges is dealing with the lack of experience and sophistication of clients in banks and companies compared to counterparts in the US and Europe.  One lawyer described the biggest challenge he has faced as “preventing clients from hurting themselves. . .they need a lot of handholding.”   This relative lack of experience with legal culture also creates difficulties in pitching for work.    As one partner at a US firm in China told us, “in the US, all one needs to do is to convince the clients that he is the best lawyer.  But in China the first step is to convince the client that he needs a legal counsel and there is value to having legal service.”    However, the silver lining to practicing in jurisdictions where the market practice is still being shaped is the opportunity for a lawyer to impact the market directly.  As one lawyer told us, “The big ticket deals shape the market.  Precedent becomes the market practice.”

Many respondents find the lack of boundary between work and private life difficult.  One respondent said,  “clients expect me to be available on my cell phone 24/7 … bankers frequently call me very late at night on matters that are not urgent or important.”   Respondents also mentioned the challenge of working in relatively smaller offices in Asia where the support is “less organized”.

For those who have “relocated” to Asia from New York or London, the primary challenge was adjusting to cultural differences and changes in lifestyle for the respondents and their families.

Satisfaction Scorecard

All of the respondents are satisfied with his or her move to Asia.  For these lawyers, the pros outweigh the cons.   In hindsight, almost all of our respondents told us that he or she would make the same move again.   In terms of what he or she might have done differently, a few respondents noted that working in the home office for a period of time to get to know their way around the firm before moving would have been useful.   Others told us that they would have made the move at an earlier time in their career to begin establishing the network needed to support promotion to partnership or a future move in-house.

Career Enhancement

All of the attorneys who are ‘returnees’ and the majority of those who have relocated agreed that the move to Asia has enhanced his or her career prospects.  Top two reasons cited was the comparative advantage of attorneys with local language skills and cultural affinity with Asian clients and counterparties, as well as the unique opportunities created by expansion of existing firms and first time entrants to the market.  The majority of the respondents see Asia as a market with good lateral mobility, where it’s easier to distinguish oneself and build a network than in the western financial centers.    Most believe that the Asian practice experience — acquisition of new legal, deal management and client development skills — increases their value.

Those considering returning to the US or Europe question whether the Asian-specific skills will be transferrable to the overseas market.  One partner called this the “half-life” of Asian specific skills.  However, one participant expressed a counterview, “Asia is forming its own way of doing things which might be exported to other parts of world.  In the long run, Asian experience might be equally important as experience in London or New York to a lawyer’s career development.”

One often cited concern was the cyclical nature of certain practice areas and the market in general, thereby making success heavily reliant on market timing.

Advice

Overall, the majority of the respondents regard Asia at “the place to be” and enthusiastically endorses following in their footsteps.  They do, however, point out a few things to keep in mind in planning a move.

Do diligence:  The most popular piece of advice is to do your diligence before moving to ensure that you land in the right firm.  Talk to as many people as possible inside and outside the firm, spend some real time in the location before moving, and seek the advice of an honest recruiter who is on the ground and knows the market well.   As one person told us, “make sure you like the people you will be working with, the offices are small and there is no place to hide.”   This caution applies to internal transfers as well as lateral moves as some respondents have belatedly discovered  that “firm culture” and quality can vary widely from office to office.

Optimize Your Timing:  Another often cited piece of advice is to make sure you are confident in your technical skills before making the move as “you will receive a lot less guidance here as the partners are so busy.”   “There is no time to focus on developing skills; you are expected to run on your own.”  At the same time, the respondents agree that it is better to make the move before you become “too senior”.  For those who are considering eventually moving in-house, one of our  in-house respondents advised, “move to Asia sooner rather than later so that your will have a couple years in private practice to learn Asian practice and develop a network before it is time to move to the next stage of your career.”

Learn Chinese:  The respondents generally caution English speakers without business level Asian language capabilities, particularly those at the more senior level, to think long and hard before making the move.  Most participants agree that the rising influence of Chinese clients globally has made Chinese language more widely used in conducting business in the region.  Lawyers without business level Asian language skills increasingly run the risk of being side-lined.

Be Committed:  In the view of many of the respondents, commitment is key to success in Asia.  As one person told us, “You should not come to China with the mindset of just testing the water.  . .  You have to be fully committed to this market to optimize your performance and reach your career goals.”

Conclusion

Our goal in writing this article has been to give an overview of the information we collected to help lawyers who are considering a move to make an informed choice.  We would be happy to discuss any of the topics touched upon in this article in greater detail.  We can be contacted at office@tognizhao.com or +852 2168 0834.

By Kathy Togni & Laura Zhao

© Togni & Zhao Limited 2012.  All rights reserved.