JunHe:A “Testing Ground” Under Favorable Conditions
The Union of Gentlemen Standing at this point in history, looking back, the founding of each law firm seems…
The Union of Gentlemen
Standing at this point in history, looking back, the founding of each law firm seems to be a mix of coincidence and inevitability, and the same goes for JunHe, established in 1989.
In 1988, the China Legal Affairs Center set up an office in Hainan, with Xiao Wei as the head. At that time, Xiao Wei’s position was directly under the Ministry of Justice, with an administrative rank equivalent to a bureau level, and his work permit bore the national emblem, which was quite prestigious. When Xiao Wei told his friends about his intention to leave his official position to establish a non-governmental law firm, his friends joked, “Has the heat in Hainan made you crazy?”
While studying in the United States, Wu Xiaoji often gave speeches. On one occasion, a foreigner asked him, “Since Chinese law firms are government-run and lawyers are state employees, won’t they report business secrets to the government when doing business in China?” This question struck a chord deep within Wu Xiaoji.
An unintentional question, but it had a significant impact. Wu Xiaoji began contemplating the idea of establishing a private law firm. Around the Spring Festival of 1988, Wang Zhilong returned to Beijing from the United States, bringing two letters from Wu Xiaoji. One was for a classmate of Wu Xiaoji, and the other for his childhood friend, Xiao Wei. Through these letters, the three successfully connected.
Taking advantage of favorable winds, on June 3, 1988, the Ministry of Justice issued the “Pilot Plan for Cooperative Law Firms,” allowing each province, autonomous region, and municipality to pilot 1-3 private law firms.
On July 30, Wu Xiaoji returned to Beijing after three years. Xiao Wei picked him up at the airport, and less than an hour after putting down his luggage, they went to a tea house near Qianmen. During this tea conversation, they set a small goal: “If we can’t be the first in the country, let’s be the first in Beijing.” They were determined to establish the law firm.
In August, Wu Xiaoji, Xiao Wei, and Wang Zhilong began drafting the charter. Subsequently, Chu Hejun and Duan Hai joined the team.
After overcoming the twists and turns of document approvals and finding an office location, the law firm was established in Beijing in 1999, named “JunHe,” which means “Union of Gentlemen.”
Establishing the Foreign-Related Business Model
In the early 1990s, government-run law firms were very small, and there were few talents who could provide foreign-related legal services. As the first batch of law graduates with formal education, two of JunHe’s founders had overseas study backgrounds and relatively strong English skills. Thus, foreign-related business became JunHe’s main source of business at its inception.
By the mid-1990s, JunHe’s foreign-related business model was basically established. Besides the founders, there was also a good team. When JunHe was first established in 1989, it operated in a “cooperative system.” It wasn’t until the policy opened up in 1994, allowing the establishment of “partnership law firms,” that they transitioned to a partnership system. Many new partnership law firms also emerged during this opening opportunity, such as Haiwen, Tongshang, King & Wood, and Zhong Lun.
From 1992 to 1993, Xiao Wei participated in exchange and training programs arranged by the Ministry of Justice and the British Council, studying British law and legal practice, and later went to Columbia Law School in the United States to obtain a Master of Laws degree. These experiences also facilitated better cooperation between JunHe and other international firms in the future.
During Xiao Wei’s overseas studies, with the establishment of other new law firms, JunHe experienced some talent loss. Therefore, upon his return, Xiao Wei reorganized JunHe to recruit new talents, attracting not only a batch of overseas talents but also several founders and partners from well-known large firms. If the development of JunHe in the 1990s was mainly about maintaining its foreign-related genes and quality clients while exploring the market, entering the 21st century, JunHe’s positioning and business division became increasingly clear.
Maintaining Market Sensitivity
Since its establishment, JunHe has aimed to become a “comprehensive large firm,” but this “large” is achieved through independent development under the consistent pursuit of “excellence.” According to founder Xiao Wei, JunHe could grow because it coincided with China’s 30 years of economic development, as the market had demand. The right timing, location, and human harmony all came together.
The so-called right timing refers to the opportunities available to every legal professional of that era. However, the reason JunHe could emerge as a giant amidst the waves lies in its internal cultural tradition and the founders’ genes. The key to stable and robust growth lies in leveraging the right timing and location to create “human harmony.”
Being sensitive to the market and accurately identifying demand is the first reason JunHe has developed to its current scale. In 1992, JunHe’s starting point was similar to that of many other law firms, being among the first batch of firms to obtain securities law practice licenses. However, 20 years later, the development of various law firms diverged significantly. After 2004-2005, JunHe’s business expanded comprehensively, strengthening fields beyond traditional foreign investment, such as labor law, which, despite being considered less prestigious, had substantial demand in related cases and compliance businesses. JunHe decided to focus on these areas.
Currently, JunHe has more than 20 specialized business areas, including foreign investment, mergers and acquisitions, securities and capital markets, finance and banking, infrastructure development and project financing, real estate and construction, intellectual property, high technology, international trade, minerals and natural resources, labor law, entertainment and media, dispute resolution, tax and customs, private equity and venture capital, overseas investment, bankruptcy and restructuring, antitrust and unfair competition, pharmaceuticals and healthcare, compliance, environment, health, and safety.
When considering business areas, JunHe’s second important consideration is the comprehensiveness and growth potential of the business. Comprehensiveness refers to the ability to meet clients’ overall needs when there is no specific business area, thus requiring development. Growth potential refers to the fact that some businesses may not be prominent or large at present but have significant growth potential from an international perspective. For example, antitrust business is a representative of growth potential. For businesses with growth potential, JunHe conducts research and expansion, gradually learning from abroad, introducing talents, and leading the field in China.
Prudent Layout Following Political and Economic Situations
JunHe’s advantage in location is reflected in its “layout.” JunHe was the first Chinese law firm to open branches, and the firm’s scale is often reflected by its branches. JunHe also strategically laid out its branches based on China’s political and economic situation at the time. In 1992, during the rapid development of the Hainan Special Economic Zone, JunHe’s first branch was established in Hainan. At its peak, the Hainan branch’s staff size was comparable to the Beijing headquarters, as Hainan gathered numerous projects due to development needs. JunHe participated in many projects, including foreign-invested Wenchang Power Project, foreign-invested Yangpu Development Zone Project, and large real estate projects in Yalong Bay, among others.
In 1993, JunHe established a branch in New York. The then Minister of Justice, Xiao Yang, attended the establishment of JunHe’s New York branch. In the early 1990s, JunHe began its overseas layout. Looking back now, its strategic planning and international vision laid the foundation for JunHe’s scale and brand expansion.
The Shanghai branch, established in 1994, is now the largest JunHe branch. JunHe was the first Chinese law firm to establish a branch in Shanghai. Subsequently, JunHe established branches in Shenzhen, Dalian, Hong Kong, and opened Silicon Valley and Guangzhou branches in 2020.
The establishment and income of branches change with political and economic situations. JunHe adheres to the principle of independent development and prudent expansion. Currently, JunHe’s headquarters is in Beijing, with 14 branches, over 100 partners, more than 300 practicing lawyers, and over 600 professional staff, including assistants, translators, patent and trademark agents. Including over 200 administrative staff, the total number exceeds 1,000.
Following the overseas expansion of Chinese clients, JunHe has established offices with local practice qualifications in international financial centers like Hong Kong and New York, as well as high-tech industry centers like Silicon Valley and Seattle, extending quality services from clients’ headquarters in China to the forefront of overseas investment and technological activities.
Strategies of Strong Alliances
In the context of globalization, JunHe believes that relying solely on its own strength is impossible to overcome the barriers of different countries and customs. Only by forming strong alliances and breaking down cultural and knowledge barriers can clients benefit from economies of scale and international experience, obtaining truly first-class cross-border legal services.
With outstanding performance and reputation, JunHe became the sole representative of China in two internationally renowned independent law firm cooperation organizations, Lex Mundi and Multilaw, and established close cooperation with numerous excellent overseas law firms, thus extending quality legal services to every corner of the world where clients’ businesses require.
The “Testing Ground” of the Distribution Mechanism
Regarding “human harmony,” JunHe deeply understands that the core competitiveness of a law firm lies in its talents and has always spared no effort to attract the best legal talents to join the team. Most of JunHe’s lawyers graduated from top law schools at home and abroad. Many members were senior government officials, judges, accountants, tax advisors, or scientists, or had worked in renowned international law firms or investment banks.
Besides Chinese lawyer qualifications, many JunHe lawyers also have foreign lawyer qualifications in the United States, Canada, Britain, Australia, Japan, France, Germany, and other countries. Some are authorized to represent clients before overseas and Hong Kong courts, U.S. District Courts, Circuit Courts, and the Supreme Court.
Understanding that professional talents are the core competitiveness of a law firm, JunHe believes that only an attractive distribution mechanism can retain talents. Therefore, in terms of “human harmony,” JunHe uses a set of distribution mechanisms suitable for its own development stage to align with the firm’s development.
At the beginning of its establishment, JunHe implemented a cooperative system, combining institutionalized autonomy with a large law firm’s norms to build a professional atmosphere. In 1992, JunHe was the first in the industry to implement a full-time legal consultant system and establish an equal distribution mechanism, eliminating the practice of “one lawyer, one office.”
In 1999, JunHe was the first law firm in China to implement the “lawyer salary system” based on international practices. Unlike the traditional method where fees were charged per lawyer’s time, the lawyer salary system aimed to increase team cooperation, enhance business efficiency, and improve service quality.
In 2001, JunHe implemented a partnership system, providing significant incentives for lawyers who had made outstanding contributions. However, JunHe also emphasized that while partners received rewards, they also had to undertake responsibilities.
The partnership system also introduced new partners, ensuring the firm’s healthy development and inheritance. JunHe continued to adjust and improve the distribution mechanism according to the firm’s development, striving to provide more attractive incentives to motivate partners and lawyers to contribute to the firm’s growth.
Balancing Fairness and Motivation
In 2008, JunHe further optimized its distribution system to ensure fairness and transparency, while maintaining strong incentives. The firm adopted a performance-based distribution model, which considered both individual contributions and team performance. This system allowed partners and associates to benefit from their hard work and collaboration, fostering a culture of mutual support and shared success.
JunHe also implemented a transparent evaluation process, where partners’ and associates’ contributions were assessed through a combination of quantitative metrics and peer reviews. This approach ensured that rewards were distributed fairly, based on objective performance indicators and feedback from colleagues. By balancing fairness and motivation, JunHe created an environment where lawyers were encouraged to excel and work together towards common goals.
Embracing Diversity and Inclusion
JunHe has always valued diversity and inclusion as essential components of its culture. The firm actively promotes gender equality and provides equal opportunities for all its lawyers, regardless of their background. JunHe’s commitment to diversity is reflected in its hiring practices, mentoring programs, and leadership development initiatives.
To support female lawyers, JunHe has implemented flexible working arrangements, mentorship programs, and leadership training designed to help women advance in their careers. The firm also encourages an inclusive workplace culture where everyone feels valued and respected. By embracing diversity and inclusion, JunHe fosters innovation, creativity, and a broader perspective in its legal practice.
Continuous Professional Development
Recognizing that the legal industry is constantly evolving, JunHe places a strong emphasis on continuous professional development. The firm invests heavily in training and development programs for its lawyers, ensuring they stay abreast of the latest legal trends, regulatory changes, and best practices. These programs include in-house training sessions, external seminars, and opportunities for further education at prestigious institutions.
JunHe also encourages its lawyers to gain international experience by participating in secondments and exchange programs with leading law firms and organizations worldwide. These experiences not only enhance their legal skills but also broaden their understanding of different legal systems and cultures. By prioritizing continuous professional development, JunHe ensures its lawyers are well-equipped to meet the diverse and complex needs of their clients.
Adapting to Technological Advancements
In an era of rapid technological advancements, JunHe has proactively embraced new technologies to enhance its legal services and improve efficiency. The firm has implemented advanced case management systems, document automation tools, and legal research databases to streamline workflows and reduce administrative burdens. These technologies enable JunHe’s lawyers to focus more on providing high-quality legal advice and less on routine tasks.
Additionally, JunHe recognizes the importance of cybersecurity and data protection in the digital age. The firm has established robust cybersecurity measures to safeguard client information and ensure compliance with data protection regulations. By leveraging technology and prioritizing cybersecurity, JunHe enhances its service delivery and builds trust with its clients.
Commitment to Corporate Social Responsibility
JunHe is deeply committed to corporate social responsibility (CSR) and actively contributes to the communities in which it operates. The firm engages in various pro bono activities, offering legal services to underprivileged individuals and non-profit organizations. JunHe’s lawyers dedicate significant time and expertise to pro bono work, reflecting the firm’s commitment to justice and social equity.
Furthermore, JunHe supports various charitable initiatives, including education programs, environmental conservation projects, and disaster relief efforts. The firm encourages its lawyers to participate in volunteer activities and community service, fostering a culture of giving back and making a positive impact on society.
Future Outlook
As JunHe looks to the future, it remains committed to maintaining its core values of excellence, integrity, and client-centric service. The firm will continue to adapt to the changing legal landscape, embracing new challenges and opportunities. JunHe aims to expand its global reach, enhance its service offerings, and attract top legal talent to sustain its growth and success.
JunHe’s journey from a small, pioneering firm to one of China’s leading law firms is a testament to its founders’ vision, strategic planning, and dedication to quality. By balancing innovation with tradition, and combining individual excellence with collective strength, JunHe has established itself as a trusted advisor to clients both domestically and internationally. The firm looks forward to building on its legacy and shaping the future of legal practice in China and beyond.
