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A $130M Deal Closed — Then the Chinese SOE Refused to Pay the Broker Fee.
— $1.5M Recovered in Arbitration.
Germany · CIETAC Arbitration · 2024
$2.6M claimed · $1.5M recovered· 3 years
Background
In 2017, a German citizen signed a Memorandum of Understanding with a large Chinese state-owned enterprise (SOE). The SOE commissioned the German citizen to use his network of contacts in Europe and the United States to seek overseas clients, agreeing to pay a brokerage fee equivalent to 2% of the contract value if clients were secured.
Transaction and performance
Following the signing, the German citizen introduced a German company to the SOE through his market network, assisted with quotation and negotiations, and ultimately facilitated the signing of a $130 million contract.
Dispute
After contract execution, the SOE claimed the client had been secured through its own channels — unrelated to the German citizen’s introduction — and refused to pay the commission.
Outcome
The German citizen entrusted SuitWin Recovery to handle the case. Through a CIETAC arbitration award, SuitWin Recovery secured $1.5 million in brokerage fees for the German citizen.
