Our report on the billing rates of PRC law firms in the November issue last year was warmly received by the market. Corporate counsel were delighted to see that the legal services sector had begun to embrace more fee transparency. Law firms tired of low-price competition were also excited to see a benchmark on the value of quality lawyers begin to emerge. Given the positive feedback, the editorial team of China Business Law Journal conducted the survey on billing rates again this year, and, encouragingly, more law firms have participated.
Our research this year finds that many corporate counsel now need to manage their legal budget more cost-efficiently, and have taken back much of the legal work they would previously outsource to law firms. The increasing pressure on how much they can pay has also translated into more rivalry between law firms. Therefore low-price competition is prominent in the market, but many clients still know how to find a balance between cost and quality.
Many corporate counsel say they are willing to pay for high-quality, prompt, precise and comprehensive legal advice. But since the legal services market has already become a buyer’s market, law firms need to work out how to use various kinds of billing methods flexibly to serve their clients better.
This issue also features our A-List of the top 150 private practice lawyers for the China market, including 100 lawyers working in PRC law firms and 50 lawyers in foreign firms. Our editorial team compiled this list based mainly on the feedback of clients in the legal services industry. Our A-List announcement has been well received by the business and legal communities. This year, again, we received a large number of nominations and comments. Clients think highly of lawyers with plenty of legal knowledge and practical experience, and with a business mindset. There is also an increasing need for lawyers who know cutting-edge practice such as data compliance and blockchain.
This issue also looks at China’s environmental governance. Lean to green finds that China is shifting from its previous emphasis on a command and control-style regulatory approach to the use of fiscal and market tools. Such a tendency can be seen in many laws and regulations. The most significant shift towards market-oriented environmental protection has been the adoption of a national emissions trading scheme to incentivize reductions in greenhouse gas emissions. The central government plans to begin auctioning emissions allowances in 2020, and eventually expand the scope of the programme to cover eight key industries.
The market-based approach have been popular in the developed markets, so multinational companies should be well placed to capitalize on opportunities as China’s environmental governance style moves in this direction. Benefits include favourable tax treatment for creating environmental benefits, increased transparency, and the ability to lower costs by improving compliance.
