Former Communist China has not been known for access to justice. In fact, recent protests in Hong Kong sprung up due to China’s Fugitive Offenders and Mutual Legal Assistance in Criminal Matters Legislation. Yet Communist China is experiencing a Social Spring (a transformation from Communism to Socialism). What role will China’s Communist roots play in future access to justice? 

Recently the Bank of International Settlements (BIS) discussed financial inclusion. For litigation finance to reach peak ‘high quality’ development, robust international standards are required. The United Nations Universal Declaration of Human Rights (UNDHR) is an example where 192 countries agreed on the common standards of achievement for all people and nations. There is no ‘regulatory arbitrage’ when dealing with human rights.  

BIS is pioneering the social etiquette around litigation finance, according to Mr. Liu Guiping, Deputy Governor of the People’s Bank of China. Mr. Guiping’s startling approach marks a historic milestone for access to justice in China. Guiping says China aims to pioneer social justice, and that litigation finance’s ultimate potential logically requires coordinated development of regulation innovation.

China’s Social Spring Key Takeaways: 

• Guiping remarks on China’s potential to harmonize the now clunky relationship between attorneys, third-party investors and claimants. 
• China is a very large country with 31 provinces. The Social Spring in China must ethically address claimants in certain jurisdictions, while in others champion access to justice, reasonable disclosures and a standard for litigation finance regulatory innovation. 
• The notion of a common cross-border regulatory standard for litigation finance is considered absurd by many. International funders have boosted litigation finance revenues by leveraging regulatory arbitrage structures. How will China play into all of this? Only time will tell… 

As an added bonus, we collated 39 highlights from Guiping’s speech, for reference.