Part 5/11:
This strategy gave Chinese sellers an illusion of immunity: they could exploit the U.S. marketplace’s trust and infrastructure without facing traditional Chinese legal or regulatory barriers. But this gave up the critical advantage of invisibility—their actual operations now come under U.S. jurisdiction.
Enforcements and Legal Breakthroughs: The Power of U.S. Law
The game has shifted. U.S. authorities like the FTC can now enforce real penalties against these companies operating as U.S. entities. Previously, bringing legal action against Chinese sellers was nearly impossible—serving legal papers or enforcing judgments in China was a formidable obstacle, and penalties in the U.S. were minor.