China’s legal industry is entering an era that appears prosperous but is plagued by severe internal competition, all within the country’s unique political and economic environment, giving rise to various abnormalities.
On November 1, 2025, the Hurun Research Institute released the “2026 Hurun Wisdom List: Top 100 Outstanding Recommended Law Firms in Greater China.” The listed law firms are mainly headquartered in Beijing (50) and Shanghai (19), followed by Shenzhen and Hangzhou with 5 and 4 firms respectively.
Top law firms like King & Wood, Grandall, and Zhong Lun provide year-round legal advisory services to a total of 186 companies listed in the SSE 300 Index, with a combined market value of nearly 40 trillion yuan, accounting for 63.64% of the total market value of the SSE 300 Index.
According to the latest data from the Chinese Ministry of Justice in September 2025, there are currently 45,000 law firms in China.
Data from the Legal News Research Center shows that in 2015, there were 297,000 lawyers in China, which has now increased to 830,000 in 2025, nearly 1.8 times in the past ten years. The growth peaked in 2018 at 15.89% and gradually declined thereafter, with a growth rate of 3.75% in 2025.
Shenzhen lawyer Zhang Maorong is concerned about the number of lawyers leaving the industry.
Zhang Maorong cited information from the Shenzhen Judicial Bureau’s official website on October 29, stating, “In the first ten months of 2025, a total of 1,221 lawyers voluntarily canceled their licenses. By the end of the year, it is expected to reach around 1,500, accounting for 5.6% of Shenzhen’s 26,929 full-time lawyers.”
On November 6, Zhang Maorong further mentioned that it’s not only lawyers canceling their licenses but also law firms actively applying for cancellations. He listed several law firms’ cancellation information displayed on the Shenzhen Judicial Bureau’s website.
Zhang Maorong analyzed that many new lawyers enter the field right after passing the bar exam without practical experience and realistic expectations, leading to disillusionment. The exodus of experienced lawyers indicates the harsh realities of the legal profession. He stressed the importance of monitoring the exiting lawyers and law firm numbers.
Guangzhou lawyer Yumei expressed that the increasing resignations of lawyers are primarily due to economic reasons, as many seek other career paths, such as becoming legal consultants for companies. She also attributed the rising number of lawyers to the loosening of the bar exam standards, allowing individuals with lower qualifications to pass.
Beijing lawyer Dongning commented that the apparent prosperity of the legal industry is more reflected in the quantity of lawyers and law firms, with individuals experiencing a decline in income, increased work pressure, and deteriorating mental health. He described it as a situation of “overall prosperity but individual contraction.”
Dongning pointed out that high-quality cases are concentrated in a few resource-rich regions and top law firms, making it challenging for ordinary lawyers to earn fees even if they take on cases. He cited examples of colleagues facing financial struggles despite a high caseload.
Reflecting on the struggles within the legal industry in China, many professionals expressed their frustrations.
Fairice, an online blogger, shared concerns about the industry’s collapse, with many legal elites now struggling to make ends meet, resorting to drastic measures like writing poetry or delivering food to survive.
Shenzhen lawyer Yang Xin, who has been practicing for two years, highlighted the industry’s challenges and advised against young people entering the field due to high competition, lack of cases, and financial pressures.
These personal testimonies underscore the increasing disillusionment and challenges faced by legal professionals in China, with many considering career transitions or even leaving the industry for good due to the intense competition, insufficient income, and demanding work environment.
Despite the outward appearance of growth in the legal industry, many insiders are voicing concerns about its sustainability.
These accounts reveal a grim reality for many legal professionals in China, shedding light on the complex issues impacting the legal landscape in the country.