Full Question
I’m importing artificial grass from a China company and they offered me the product through an agency in Egypt and declared that all products will be covered. They have asked for USD10,000 for agency insurance/fee. Should I pay it?

Answer
I don’t know the details of your case, but here is my initial feedback.

If the relationship is mutually beneficial, it feels strange to charge you an upfront fee, especially if you can commit to a given annual purchase.
There are so many factories in China; if the one you found is not a good fit, find another one!
If you want some information about the pros/cons of setting up a distributor relationship with a China factory/brand, here is are some relevant articles I wrote:
http://chinasourcinginfo.org/2011/07/27/finding-a-manufacturer-to-produce-and-distribute-worldwide/

http://chinasourcinginfo.org/2011/06/16/how-to-partner-with-a-factory/