From AP, via Houston Chronicle (link):
China may be preparing to crack down on foreign law firms that violate restrictions on the type of business they are allowed to do in the country, according to a document issued by the Shanghai Bar Association.
Foreign law firms are barred from directly handling any business having to do with Chinese law, though most are violating that rule, said a memorandum dated April 17 and seen Monday on the bar association’s Web site.
It warned that “their illegal business activities were becoming serious.”
See also China Poised to Crack Down on Foreign Law Firms by China Confidential, and China’s Foreign Law Firms Under Seige? by China Law Blog