Domestic firms have devised many different strategies to compete with their international rivals, especially with regard to work on outbound M&A transactions. An increasingly popular one is to join international alliances and legal networks, via which law firms can promote themselves as one -stop-shop, for Chinese clients.

For instance, Jun He is a member of Lex Mundi and has referred the overseas parts of its outbound work to member firms in different regions. "Just in the last week we did two referrals," said Audrey Chen, partner at Jun He. "Our clients appreciate that we can coordinate the regional counsels...they much prefer having a local firm to safeguard the cross-border legal issues as we understand their needs better," she added.

Joining international alliances has proved to be an even more effective strategy for smaller firms like Jade & Fountain. The firm is a member of three different international alliance organisations including TAGlaw, Terralex and the International Legal Network. "Clients now see it as a value-add for their needs," said Jade & Fountain partner Lawrence Guo.

As Chinese outbound deals grow in size and speed to new regions, especially in energy & resources sector, international alliances will increase in value for local firms. Brazil and Canada are two cases in point, and alliances between local firms and firm in those places are flourishing. ALB