Is A&O Shearman British or American? And does Freshfields’ expanding U.S. presence give it license to ditch the U.K. label?
Just six months ago, both firms might have proudly highlighted their American credentials and global aspirations, with only a nod to their British roots. But times have quickly changed. Operating with a sizable footprint in the U.S. now comes with complications that go beyond market access and partner promotions.
Chief among them is the political climate. President Donald Trump’s administration has placed Big Law in the crosshairs, especially over diversity, equity, and inclusion policies. While this scrutiny ostensibly targets American firms, A&O Shearman and Freshfields—despite their British heritage—have not escaped attention. Who would have thought all their efforts would lead to this.
In contrast, Clifford Chance and Linklaters, whose U.S. operations remain less well known, have so far flown under the radar. The implications extend to other U.K.-based firms, too, including Herbert Smith Freehills, which has long championed diversity initiatives and is preparing to merge with Am Law 200 firm Kramer Levin Naftalis & Frankel.
Then there's the growing strain in U.S. foreign relations. Rising tensions and looming tariff wars—especially with China—are creating headaches for firms tied too closely to American policy. The cooling of U.S.-China relations has already prompted many American firms to scale back in Greater China, in part due to national security risks. This is not just office closures. Take a look at the trend of partner promotions across the largest international law firms and it is clear Asia is not in vogue.
Chinese law firms are enjoying the space the market exodus has created. Turmoil in the U.S. capital markets has led many local lawyers to feel more optimistic about Hong Kong equity capital markets activity, continuing a trend of Hong Kong Stock Exchange IPOs sidelining international law firms.
Some in the market have wondered whether state-owned enterprises have been told to favour Chinese firms over U.S. ones. There will probably be other work U.S.-based firms miss out on or feel unable to take on too. Last year, law firms such as Akin Gump Strauss Hauer & Feld and Steptoe & Johnson terminated some lobbying relationships with Chinese clients.
Curiously, this geopolitical turbulence has also given Freshfields a strategic edge. Despite efforts to rebrand itself for U.S. appeal—its website barely references its nearly 300-year British history—the firm has found new leverage in being not American...
