New CIETAC Arbitration Rules on Third-Party Funding
ISSUING AUTHORITY:
Chinese international economic and trade arbitration commission
DATE OF RELEASE:
January 1, 2024
EFFECTIVE DATE:
January 1, 2024
The China International Economic and Trade Arbitration Commission (CIETAC) implemented revised arbitration rules on January 1, 2024. Notably, these new rules include provisions for third-party funding. Parties are now required to provide the arbitral tribunal with information about third-party funding promptly. This step aims to increase transparency and fairness of the arbitration process and safeguard the arbitrators' impartiality and independence.
Additionally, the tribunal is authorized to consider third-party funding when giving awards and determining related costs to ensure that the funding does not inappropriately influence the proceedings or the outcome of an arbitration.
These revisions to the rules reflect an acknowledgement of the growing role of third-party funding in arbitrations. The revised rules bring greater clarity and standardization to arbitration process in China, and also align with the global trend towards increased transparency in such funding arrangements. This enhancement is seen as beneficial for all parties involved in arbitration, providing a more structured and predictable arbitration environment.
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