In China the rules state that U.S. firms can't practice Chinese law nor can the Chinese lawyers who work for them. Since the influential Shanghai Lawyers Association denounced what it said were Western firms' widespread violations of those rules, leaders of foreign and domestic firms have been abuzz over the possibility of a government crackdown. The use of Chinese lawyers as "legal consultants" isn't the only cause of friction between foreign and Chinese firms.
Increasing Competition in China Causes Friction for Law Firms
June 16, 2006