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Good question. We live in an increasingly connected world.
eBAY fully supports sellers from China & Hong Kong.
In 2010 transactions from China mainland + HK amounted to $4billion USD.
That kind of volume gives eBAY and their China based sellers leverage.
It allows eBAY to cut deals with the U.S. Postal Service and China Post (China equivalent of the USPS) to allow qualified sellers to offer free shipping from mainland China.
Hope this helps.
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That does not really answer the question; and it's not really anything to do with e-Bay. The Chinese can undercut nearly everyone else because they have built a strong mass-manufacturing economy with wage levels adequate (but hardly generous) for themselves, but very low compared to Western levels. Consequently their products are comparatively far cheaper in the West, than if made in those Western nations. Companies like e-Bay are merely capitalising on the situation.
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