The Study Of The Regulation Of The Third-party Funding In International Investment Arbitration

The Connotation about Third-Party Funding(hereinafter referred to as TPF)in International investment arbitration is through the third-party funding arrangements with investors,third-party investors to bear the investor's legal fees for arbitration requests,but also enjoy the proportionate share of the interests of the win right.In the past decade,third-party funding has become increasingly common in many jurisdictions and is increasingly being used in the area of international investment arbitration.Third-party contributors in the ICSID initiated arbitration began popular in Europe and the United States and industrial trends,a few days ago,in the Asian region(such as Vietnam,Hong Kong,China)also attracted wide attention and discussion.Put third-party funding into international investment arbitration will enable more people to use arbitration services to support their under-funded investors in safeguarding their legitimate rights and interests,as well as to increase the use of arbitration,thereby reducing the number of business cases the court will need to deal with,Waste of resources.In the case of the grantee,the involvement of third-party sponsors is significantly greater than their arbitration participation.Of course,third-party contributors are not blindly funded,and the success of team cases in advance of their investment criteria is expected to be due diligence,and only cases with a high probability of success(in practice,typically 60% or more),But also allow the parties to the arbitration from an objective point of view of the reasons for their claims.However,there are some negative consequences of third-party funding interventions,such as lack of transparency of third-party sponsors and subsidized enterprise financing relationships,Of the host country.In this regard,it is necessary from the international and domestic levels to carry out the necessary legislative regulation.At present,the domestic legislation is focused on regulating the rights and obligations of arbitrators,and there is still a gap in the legislation of third-party subsidy-funded arbitration,even though a few countries have a slight involvement in this aspect.There are also different approaches.For example,some countries allow(such as the United States)and some countries prohibit(Singapore),China's legislation is not set.Therefore,it is necessary to construct a unified third-party investment arbitration standards.China should follow the development trend of international investment arbitration practice,establish a third-party funding participation system,and set up specific regulatory provisions,in the hope of safeguarding the overseas investment rights of Chinese investors,on the other hand,safeguarding the fairness and independence of international investment arbitration.