A $130M Deal Closed — Then the Chinese SOE Refused to Pay the Broker Fee — $1.5M Recovered in Arbitration

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.