US courts cause problems for Chinese PayPal users

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Reports suggest that Chinese PayPal users who use the eBay-owned payments system are turning away from it after US courts have frozen their accounts.

It seems that the PayPal accounts of some Chinese merchants were frozen, and funds removed, after lawsuits in the US found against the firms. A Mr Lin claims that $6500 was taken from his PayPal account after a US court found that his company had infringed a US copyright.

It’s said that as many as 5000 PayPal accounts in China have been frozen since April last year and the sums involved amount to many tens of millions of US dollars.

You can read up more on the story here.

4 Responses

  1. This is very good news as hopefully these are the very same Paypal accounts being used by Chinese sellers evading UK VAT.

    We can only hope that one day the UK courts can follow suit, or HMRC seize funds for breaking UK VAT laws.

  2. It makes no sense to me, i guess this is because the US government does not take kindly to Chinese traders avoiding taxes etc etc. The American tax authorities are far superior to UK HMRC.

    Its funny because we are quite happy to follow American policies and mimic them in everyday apart from when the normal everyday people will see a long term benefit. I.e Jobs growth and collection of higher taxes.

  3. We often hear of British Companies and indeed Political Parties bringing in US Experts to advise them. Perhaps HMRC should bring in a few US Experts to advise them how to deal with Chinese Tax Dodgers. Then perhaps Chinese Sellers in the UK might find themselves being chased rather than ignored by HMRC.

  4. Ha Ha, I’ve been saying for ages the Chinese bubble would burst.

    I guess its hard to finance and fight a claim in the US courts from the profits of crappy £0.99 fake iPhone accessories which include free shipping.

    Screw the lot. I’m glad PayPal is finally stomping on them – albeit in a sneaky manner – but they have done similar over the previous few years to many US sellers of “designer & brand name items”.

    Good riddance to their fake and crappy items that take 4 weeks to arrive and then you get zero service if there is an issue.

    Chineese sellers abused eBay for many years. I doubt after calculating how much they ripped off they will be too sorry about losing a few quid.

    Only a fool would leave thousands in their PayPal account so more fool them, but i’m certain they will still whinge.

    PayPal have executed an agressive strategy and for all the right reasons – and PP will keep the frozen funds! Let them start a crazy expensive defence in a US court (I doubt any will bother and PP know it). Ha Ha, good riddance, and about time.

    Long live The Revolution!! 🙂


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