The Theory Of International Arbitration In The Third Party Funding

In recent years,with the development of economic globalization,international arbitration cases and arbitration fees have also shown rapid growth.In order to ease the economic pressure of the arbitration parties,Third-party Funding in International Arbitration emerged.Third-party funding has advantages in lightening the financial burden and risk transfer of the parties.Many countries and regions have begun to actively introduce and vigorously support the development of third-party funding for domestic arbitration.It cannot be overlooked that third-party funding plays an important role in protecting the parties' full and timely exercise of arbitration rights,transferring the party's arbitration costs and the risk of losing the lawsuit,and providing new financing channels for financiers,but it also brings about challenges.As for how to deal with these challenges,it is necessary to consider prudently according to practice and seriously assess the necessity and feasibility of introducing the system,and to make great efforts in such aspects as unified disclosure rules,provision of cost guarantees,and improvement of industry self-regulation and external supervision.This paper comprehensively analyzes the third-party funding system in international arbitration.Apart from the introduction,it consists of the following components:The first part is an overview of the third-party funding system in international arbitration.It is divided into three parts: the definition of third-party funding system in international arbitration,the analysis of similar concepts,and the form and content of third-party funding systems in international arbitration.The second part is the rise,development and practice of third-party funding in international investment arbitration.Even if there are no financial difficulties,many investors still choose to use third-party funding in international arbitration.This system originated from the Middle Ages in the United Kingdom and experienced third-party funding litigation and the development of arbitration.The system in the United Kingdom,the United States,Australia,Germany,Singapore and Hong Kong is relatively complete,providing experience for the introduction of this system in China in the future.The third part is to elaborate the challenges brought about by the third-party funding system in international arbitration.Undoubtedly,the third party funding in arbitration brings about obvious advantages,such as providing funds for arbitration parties and transferring the risks of arbitration.However,the challenges it poses cannot be ignored.Specifically,it mainlyinvolves conflicts of interest,conflicts of disclosure and confidentiality,difficulties in implementation,problems of costs and so on.The fourth part introduces the experience of regulating third-party funding systems in international arbitration.Based on the difficulties and challenges presented in the second section,two different regulatory paths are introduced.The first is the government-led mandatory regulation,and the second is the non-mandatory industry self-regulation.In order to introduce the system,China has gained some experience through the understanding and learning of different practices.The fifth part is the exploration of third-party funding in international investment arbitration in China.This part studies the necessity and feasibility of the development of this system in China and the assumption of the system construction.With the recognition of third-party funding for arbitration in Hong Kong,China,as the second-largest economic development country,is expected to introduce this system in the future.The last part is the summary of the full text.