China’s Avic plane maker ordered to pay US$70m to Dallas wind firm after bad blood in Cirrus takeover

Tang Energy Group, a Dallas-based clean energy company, has won a more than US$70 million arbitration award for breach of contract against China’s biggest state-owned aerospace and defence company, Aviation Industry Corporation of China (Avic).

The ruling by the International Centre for Dispute Resolution in Dallas provides a glimpse into the growing number of disputes between Western firms and Chinese companies doing business overseas.

Tang Energy argued Avic did not fulfil commitments to help fund a West Texas wind farm and develop a global wind energy business as part of a joint venture, Soaring Wind Energy.

“The case clearly displays the need for Chinese companies operating in the United States to understand the importance of binding contracts, corporate formalities and the rule of law,” Tang Chief Executive Patrick Jenevein III said in a statement.

“For US-China business partnerships to succeed, there must be a level playing field that supports equality and transparency.”

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Avic did not immediately respond to requests for comment.