These approvals bring the number of foreign law firms represented in the mainland to 92 from foreign countries. The Hong Kong total is 28.

China started to admit overseas law firms in 1992, and they do mainly non-court proceedings.

"The prospect of China's near-certain (WTO) accession has created a new positive atmosphere in the international business community towards China," said Duane Wall, chairman of the US firm White & Case LLP. "It is thus propitious that White & Case is opening an office in China at this historic moment."

The justice minister says more is to come.

"China's legal service sector will open wider after the nation gains full WTO membership," said Minister of Justice Gao Changli. "We will honor our commitment to the WTO (concerning the legal sector) and will actively promote further exchange and cooperation between lawyers at home and abroad."

Gao said the ministry is working on a regulation on the operation of overseas law firms in the mainland.

After China joins the WTO, the barriers overseas law firms now face will be removed. They are now allowed to open branches in 15 cities. Ten have seen overseas law firms open business. Shanghai and Beijing are their hubs.

A restriction that each firm can have only one mainland branch will also be lifted after China's WTO accession.

This overseas influx presents challenges and chances for mainland firms.

Gao, speaking at a ceremony yesterday, asked overseas law firms to help raise the caliber of their Chinese counterparts through exchanges and cooperation.

China's legal system was restored in 1979 after being undermined during the "cultural revolution" (1966-1976).

China now has more than 110,000 lawyers and 9,000 law firms. Despite improvements, Chinese firms lack well-trained professionals who specialize in finance and securities.

(China Daily June 9, 2000)