Third-party litigation funding is crucial in international arbitration, where cross-border disputes require substantial financial resources to pursue. With US-China relations deteriorating due to economic competition, intellectual property battles, and national security concerns, international arbitration has become a battleground for both countries to resolve their differences outside traditional courts. Funders recognize the potential for significant returns in these cases, especially as they often involve large corporations or government entities.
International Arbitration and the Role of Funding
Third-party litigation funding is crucial in international arbitration, where cross-border disputes require substantial financial resources to pursue. With US-China relations deteriorating due to economic competition, intellectual property battles, and national security concerns, international arbitration has become a battleground for both countries to resolve their differences outside traditional courts. Funders recognize the potential for significant returns in these cases, especially as they often involve large corporations or government entities.