Are Hong Kong and China two different countries, as PayPal believes?
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In reality, of course, no
But PayPal is not about reality as in world at large, I've learned
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I've emailed Hong Kong Monetary Authority, see if they're at all interested; given no help from Paypal, nothing from the community here. [maybe this "community" is just a place for people to post with nothing to happen after; abandon hope, all ye who enter here ?]
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Guess not much point trying to help you then, best try customer services as you think we are of no help.
Advice is voluntary.
Kudos / Solution appreciated.
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And you had an answer.
Paypal is country specific and when paypal started HK was not joined to China so had different paypal accounts as paypal is country specific.
As those terms and conditions have not changed then they probably didn't unite the accounts under one countries flag.
If you are in HK you should have opened an HK account and not a C2 account.
When you click on the drop down box to select a country you can see HK and China, not rocket science to pick the correct one is it?
There are other country territories that come under those counties flag but have another separate paypal account for that area so yours is not unique.
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And yet, China is the country Hong Kong is in.
From PayPal via twitter:
//Reviewing your conversation, you mentioned your PayPal account was restricted due to an address issue with Hong Kong and China. Please know, PayPal would not restrict your account for this reason.//
- turned out this idea of the help person is wrong... PayPal indeed restricted and effectively terminated my account due to this address issue.

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