A reporter from the Baltimore Sun has reported that Chen reached agreement with the Orioles for a 3-year deal worth around $12 Million. That's a pretty good deal for him, Baltimore can be a difficult ballpark to pitch in and he may struggle a bit in his first year, but I think he has the stuff to be successful in the bigs.
The loss of Chen will certainly hurt the Dragons. Pitching is definitely their strength right now and they have some young pitchers that hopefully can help fill that hole, but having two aces last year really helped cover for their inept offense. I haven't seen anything about them looking at any foreign hitters so far, but they have room for one, they will definitely need to score more runs next year if they want to compete.