Refund Query?

[Stac45]

I have asked for a partial refund from a Chinese Company as the goods I purchased were not as described.  They have agreed to this but say I must 'close' the dispute with paypal first.  Otherwise they cannot refund me.  They have said that Paypal have 'frozen' their account and I need to say everything is resolved, before they refund me.  I have copied what they have written below.  Is this correct?  I am just a bit paranoid that if I do this - I won't get paid?  Can't they refund me first?  Then I can say to paypal the issues has been resolved?  Can someone help, please?

Hello, please follow the steps below to end the dispute.

1. Go to the mediation center.

2. Click your dispute in the list of unresolved events.

3. Click to mark this problem as resolved.

4. Click OK.

Because the transaction record is frozen, we cannot manipulate the amount in the transaction record.

[kernowlass]

@Stac45 

If you had to close a case to get a refund then it would be pointless opening one.
NEVER close a dispute / claim until you have a refund.
If the seller issued a refund then that would close the dispute automatically.
If he doesn't escalate to a claim.
Do not close it or he can ignore you and you can't open a second dispute OR re-open a closed one.

[Stac45]

Thank you for the reassurance.  I thought it looked a bit dodgy.  I have now 'escalated' the issue with paypal  and they can look into it.  Thank you for your help.