"It is very strategic for us to be strong in China because we regard China as a very important country, and it is becoming more so every day," said Christine Lagarde, the firm's chairman.

The Chicago-based Baker & McKenzie believe China's impending entry into the World Trade Organization (WTO) will mean not only a more flexible environment for the provision of legal services, but also more clients.

"Overall, we are confident that there will be more business opportunities, more investment and the development of trade," said Lagarde.

"We are absolutely ready," stressed the 44-year-old expert in employment law, citing the fact that with offices in 35 countries, most of which are WTO members, the firm is a veteran in providing legal assistance across international borders.

Although the firm has already filed an application with the Ministry of Justice, the Shanghai branch will only become a reality after China gains full membership of the WTO. This is because each foreign law firm is only allowed to have one office in the Chinese mainland at present.

Baker & McKenzie was one of the first foreign law firms to come to China and set up a branch in Beijing in 1993, when China lifted the ban against foreign lawyers working in its legal services market.

Although no business details were available, in the past seven years, the firm has seen a huge growth in the number of its lawyers and the size of deals being worked on in its China office thanks to an increasingly open market and the improvements made in the legal system, according to Lagarde.

Such business opportunities have lured quite a number of international law firms to China. Statistics from the Ministry of Justice indicate that so far, more than 100 overseas law firms have set up branches on the Chinese mainland.

Overseas lawyers are only allowed to handle non-litigant cases, and cooperation with Chinese lawyers has been stressed.

"We have worked well with Chinese law firms," said Zhao Jia, who is in charge of the branch. "It's a cooperative relation."

Baker & Mackenzie, established 51 years ago in the international field, is now cooperating with the National People's Congress (NPC), China's top legislative body.

Earlier this year, a delegation from the NPC went to the firm's US office to discuss a new trust law with its lawyers.

"What is striking for us is the extent of change that has taken place and the willingness of the Chinese authority and the Chinese people to embrace the changes," said Lagarde.

"It is a very challenging situation for professionals because you have to keep up with the changes," he said.

(China Daily 10/23/2000)