Case of German Citizen VS. Chinese State-owned Company Regarding Brokerage Contract Dispute.
A German citizen introduced overseas clients to a Chinese SOE under a 2% brokerage arrangement; after a $130 million contract was signed, the SOE refused commission. SuitWin China Law Firm secured $1.5 million through CIETAC arbitration.
Background
In 2017, a German citizen signed a Memorandum of Understanding with a large Chinese state-owned enterprise (SOE). The Chinese SOE commissioned the German citizen to utilize his network of contacts in Europe and the United States to seek overseas clients for the SOE, agreeing to pay the German citizen 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 Chinese SOE through his German market network, assisted with the quotation process, negotiations, and ultimately facilitated the signing of a $130 million contract.
Dispute
After contract execution, the Chinese SOE claimed the client was secured through its own channels, unrelated to the German citizen's introduction, and refused to pay the commission.
Outcome
The German citizen entrusted SuitWin China Law Firm to handle the case. Ultimately, through arbitration by the China International Economic and Trade Arbitration Commission, SuitWin China Law Firm successfully secured $1.5 million in brokerage fees for the German citizen.