The burgeoning legal scene in China is attracting attention from foreign lawyers who are keen to be a part of the economic development of the nation. Traditionally, foreign lawyers have taken up positions in China branches of international law firms. However, as some international law firms struggle through the financial crisis and restrict recruitment, foreign lawyers are starting to look to Chinese law firms for employment.

Mark Schaub, the first foreign lawyer to join King & Wood, landed in Shanghai in 1992. At the time he thought he would spend a year or two in China and ride out the recession before returning home to Australia when the economy recovered, but he never left. Cue forward to 2009 and Schaub has now reached the summit that few other foreign lawyers ever reach: partnership at a Chinese law firm.

His endeavours in China have resulted in the publication of his first book: “China: The Art of Law – Chronicling Deals, Disasters, Greed, Stupidity and Occasional Success in the New China”. It’s a guide for the uninitiated foreign investor looking to do business in China and Schaub illustrates his lessons with examples of doomed ventures.

However, his time as a lawyer at King & Wood is reportedly much less controversial. “Things are very similar [to foreign law firms]. A lot of partners at King & Wood used to work in foreign law firms in China or in foreign countries. The way they draft things and the way they do things in top-tier law firms is similar,” said Schaub.

Others have not had such a smooth transition. Working in any new jurisdiction will always be initially challenging as it requires a lawyer to navigate through a different legal system, but one foreign lawyer working in a top-tier law firm in Shanghai notes that it can be especially difficult in Chinese law firms. “Information is still power in a Chinese firm. If the partner shows too much of his hand, in the local way of thinking, he is now vulnerable because he has let all of his secrets out of the bag,” said the US lawyer, who declined to be named.

He observed that new lawyers, either junior or foreign, are essentially left to fend for themselves. “The associate learns on his own, by observing and doing, but he’s not going to get a hand-out in terms of information or helpful mentoring,” he said.

It is also essential for any foreign lawyer working in a Chinese law firm to have a firm understanding of the Chinese language. “You don’t have to speak it but you have to be able to understand it. You may get called into a meeting and no-one is going to translate for you,” said the US lawyer. He also pointed out that a lack of language skills may be overlooked if a lawyer has valuable transactional experience.

Foreign lawyers seeking partnership also face some challenges in a Chinese law firm. “Obviously, it’s easier for Chinese people to become a partner in a Chinese law firm and that is an attraction for talented Chinese lawyers to join a domestic firm. Foreigners cannot legally become equity partners – so that may be a block for some people,” said Schaub.

Of course, his experience shows that it is not impossible to overcome the barriers to partnership although this will differ depending on the size and type of the law firm. “I think China has a few big law firms which do things in a very organised way and there are many, many others which are very franchise like in their operations. Even if they share an office space, individual practitioners have their own clients. So they share a platform rather than resources – in those firms it may be harder [to progress your career],” said Schaub.

Even if partnership is not on the agenda for a foreign lawyer, working in a Chinese law firm can provide invaluable experience and a different view of how things may operate. “Working at King & Wood has been exciting because it has grown so much. You get to see how a law firm can develop really quickly,” said Schaub. He also notes that working for a Chinese law firm enables him to work with clients from all over the world. This differs from working at the China branch of an international law firm which may tend to focus on servicing clients from the jurisdiction in which its headquarters are based.

With the increase in legal work flowing in and out of China, foreign lawyers with on-the-ground experience will be able to enrich their expertise and, of course, such unique experience helps to distinguish that lawyer from the next. “I am sitting on the other side of the table and enjoying a perspective that few American lawyers get a chance to experience. So I am developing an insight into how the Chinese client thinks and how the Chinese attorney thinks – it’s an invaluable experience,” said the US lawyer.