On The Third Party Funding In International Commercial Arbitration

With the deepening of economic globalization and the prosperity of international trade,economic exchanges between countries(regions) are increasingly frequent.At the same time,due to the unique advantages of confidentiality and high efficiency,international commercial arbitration has become the first choice for many parties to resolve disputes.However,due to the high fees of international commercial arbitration,many parties are unable to initiate arbitration proceedings due to the serious lack of funds,resulting in their own legitimate rights and interests can not be timely and effective relief,and the application of the third-party funding system is the best way to solve the serious lack of funds.Britain and Australia are the countries with the earliest start and the most mature development of the third-party funding system,which have rich practical experience for reference.In Hong Kong,China,on September 1,2017,the guidelines for arbitration of third party financial assistance issued by the people's Republic of China established the third party financial assistance system and clearly specified the applicable rules of the system.However,in mainland China,the system is in a vacancy state,neither explicitly allowing the application of the third party financial assistance system nor prohibiting the application of the system.If an arbitration in mainland China In the case of third-party financing,the behavior of the parties can not be effectively regulated.However,in view of the confidentiality of international commercial arbitration,the application of the third-party financing system will be hindered.In view of the most mature development of the third-party funding system in the UK,Australia and other countries,and the international competitiveness of China's arbitration institutions needs to be improved,so it is necessary to establish the system in mainland China.Firstly,starting from the basic principles of the third-party funding system,as a new system,as long as the parties lack of their own funds and are difficult to initiatearbitration proceedings,they can apply for funding support from the powerful funders,sign funding agreements with the funders,and ensure their legitimate rights and interests get timely and effective relief.This system has a unique operation mode;Secondly,the system can be introduced by many countries(regions) to prove the necessity of its existence and use.At the same time,the system still has many limitations,such as the impact of arbitration confidentiality,abuse of arbitration procedures,etc.;Thirdly,by analyzing the operation practice of the third-party financing system in different countries and regions,comparing the system differences in different countries and regions,combining with the current situation of China's international commercial arbitration,Fully explain the feasibility of the implementation of the system in the mainland of China;Finally,with the increasing popularity of international commercial arbitration,China should also actively integrate with the international community,and put forward the regulatory model of the third-party funding system in China,as well as the specific system construction in terms of confidentiality,information disclosure,prevention of arbitration procedure abuse and coordination of interests.