The Study On Legal Issues Of Third Party Funding In International Commercial Arbitration

With the deepening of economic globalization,arbitration,which is famous for its efficiency and convenience,has gradually developed.However,with the increase of international trade volume,the fees of international commercial arbitration,which is directly proportional to the amount of the international trade disputes,are also rising.This not only brings economic burden to both parties involved in the commercial disputes,but also hinders the vigorous development of international commercial arbitration.At the same time,third-party funding developed from the litigation field began to enter the field of international commercial arbitration,and gradually developed into a promising financing industry.Due to the great advantages of third-party financial aid in alleviating the economic burden of both parties in arbitration and transferring the risk of losing a lawsuit,various countries and regions in the world also begin to support and guide the development of third-party funding for arbitration.However,it should not be ignored that the intervention of the third-party financing has brought great challenges to the current international commercial arbitration procedures.How to deal with these challenges has become an important issue to be solved in the current international commercial arbitration.This paper begins with the definition of third-party funding,clarifies the process of the emergence and development of third-party funding process,and secondly analyzes the impact of third-party funding on international commercial arbitration procedures at the present stage,and reorganizes and analyzes existing regulatory measures in countries around the world.Finally,discusses the current situation and development trend of third-party funding in international commercial arbitration of China,and try to put forward relevant suggestions for improvement.This paper is divided into six chapters,respectively from the introduction,the overview of third-party funding issues in international commercial arbitration,the impact of third-party funding on international commercial arbitration procedures,the existing regulations and evaluations of countries,our country's thinking and the final conclusions and prospects of six part.The first chapter is the introduction,which mainly explains the research background and the main content of the research.The second chapter introduces the definition,generation and development history of third-party funding.In this paper,the third-party funding in the international arbitration studied refers to the narrow third-party funding,that is,the third party other than the arbitration parties pays the fees required to apply for arbitration activities,and shares the benefits of the winning interests,not including funding behavior in a broad sense such as loans,insurance.It then sorts out the emergence of third-party funding and the evolution of attitudes toward third-party funding in maj or common law countries and some continental countries.The third chapter analyzes the legal problems caused by the third-party financing in international commercial arbitration,including three aspects:the emergence of the third-party financing causes the conflict of interests of all parties in the arbitration,thus affecting the impartiality and independence of the arbitrators;The cost-sharing problem between the parties and the third-party funders in the whole arbitration process;The third party funders or grantees violate the confidentiality of arbitration.In view of the above questions,the author has carried on the more comprehensive analysis to it,and proposed own corresponding viewpoint.The fourth chapter analyzes the regulation methods of the major countries in the common law system on the third-party financing,including legislative regulation,arbitration rule regulation,industry self-regulation and laissez-faire regulation.The author sorted out the regulatory approaches adopted by Australia,the United Kingdom,the United States and Singapore,and analyzed the advantages and disadvantages of the regulation adopted by each country.Each country's regulatory mode has distinct national characteristics,but its essential purpose is the same-to avoid risks through regulations,and to support and encourage the expansionary development of the third-party funding.In view of the above analysis,the author makes relevant evaluation and tries to put forward relevant suggestions for improvement.The fifth chapter begins with the development status of third-party funding in mainland China and Hong Kong,discusses the feasibility and necessity of the regulation of third-party funding in China,and then puts forward relevant suggestions.Since Hong Kong has issued the "Guidelines for Third-Party Funding Arbitration",while the mainland is still a legislative blank,the author first analyzes the necessity and feasibility of establishing a complete system of third-party funding in the field of international commercial arbitration in China,and believes that it is imperative to establish such a system in China.In the following part,the author tries to put forward some suggestions on how to improve the third-party financing in the field of international commercial arbitration in China,that is,to revise the "Arbitration Law of the People's Republic of China",with the guidance rules issued by various civil arbitration institutions as a supplement.Starting from the two aspects of national legislative and arbitration institutions guidelines,will improve the relevant systems in China.The sixth chapter is a summary and prospect.As an emerging model,third-party funding has become a new trend in the field of international commercial arbitration with the development of the world economy and the emergence of financial market turmoil.Although it has brought new problems and challenges to the international commercial arbitration process,third-party funding can help the sponsors to initiate arbitration and reduce the risk of arbitration and cost burden of arbitration.Many countries and regions have begun to change their attitudes toward third-party funding from prohibition to support its development.At present,the development of third-party funding in China is slow but the prospects are bright,and the regulation of third-party funding can increase its development.This paper analyzes and demonstrates the third-party funding in international commercial arbitration,in order to provide help for the follow-up research.