Litigation Funding In China
China has always been a place where doing business was somewhat of a mystery. Up until a few years ago, the Chinese economy was completely controlled by the state. While countries have been doing business with China for many years, only recently did China loosen the shackles it had on the economy, which led to companies moving there to do business.
Since that point, China has been the place to be, and litigation funding is the latest arrival to the “do business in China party.” Litigation funding is a legal and financial development that has been expanding worldwide in recent years. In countries like South Africa, Australia, and the United Kingdom, litigation funding has been used to help plaintiffs pursue cases.
In the United States, the litigation funding sector has been growing with more companies and investors jumping in the fray. Also, in the United States, more lawyers are becoming open to the concept of litigation funding due to the economic hardship that has affected their financial status and the benefits it can bring to their business and clients.
Recently, there was a presentation by CML Recruitment about litigation funding coming to China. In their presentation, they explain the benefits of litigation funding to people whose access to the legal system has been limited. China, because of its size, growing population, and evolving legal structure, has been very attractive to business. The opportunities it provides to companies seeking to move there can be numerous.
At the same time, according to many reports by several media outlets, the workers and common people in China face low wages and corruption. China’s need to compete with economic powers like the U.S. and Europe has led to a situation where abuses are rife throughout the country. Even though the government has loosened the reins, the repression tactics against its citizens can still be very brutal, especially on the workers. Litigation funding would allow claims to be filed which otherwise could not be due to lack of funding.
Litigation funding can be a win-win situation for China. It will lead a pathway for people seeking justice, while showing the world the evolvement of the Chinese legal system. While companies love the benefits of moving to China, there are some drawbacks, such as pursuing cases against corrupt officials. There are talks in the legal funding community of expanding funding to companies who are seeking justice against other companies. That development would help corporations in China and would show confidence to world about China’s legal system.
About the Author:
Lulaine Compere is a writer and research analyst at RD Legal Funding, LLC, a specialty legal funding company based out of Northern New Jersey.