It means a dispute as high as over 5000 USD is taking trial in Hong Kong court. This is an advantage to them because they know Hong Kong law well and because they have less costs to make such as e.g. travelling. Hong Kong law is different from Chinese law btw.

In this case the buyer received the wrong product / not the one as advertized / counterfeit. I thought eBay was against counterfeits. In any case, PayPal should try to contact the seller and if they don't reply they should send you back your money.

This might be a reason why you might prefer to do business in your own jurisdiction, or in your own continent, rather than trying to be a cheap skate with possibility of getting burned.

I bought an adaptor from a Hong Kong store, knowing it wasn't the official one, but it exactly matched what I required. It also had a LED informing about the status of the battery capacity; something the original adaptor didn't have. This HK one worked, but after a few months when the thing was in the loader while the electronic device wasn't attached, it went broken. Because it only costed a few EUR it wasn't worth it to complain... which might be what they wish for. Learned my lesson... now I try to evade HK...