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Paypal would not be able to check every seller / merchant in over 200 countries worldwide that adds paypal to their website to accept payments.
So they give you 'some' buyer protection but the onus is on you to risk assess your transactions.
They do stop bad companies from using Paypal when enough claims start rolling in.
However as they are in China (mostly) then its easy for them to just start over with a new name, so stopping them does not really do anything.
The BEST thing is to not buy from them in the first place, to recognise them.......
Chinese Web Sites or on Social Media ads easy to spot (once you know the below signs) so buyer beware.
1. No return address on the returns policy............thats because the site will look as if its in your country (where they despatch goods from) BUT they will ask for returns to go back to China (returns depot) at a shipping cost nearly always more than the item is worth.
2. No contact telephone number............if you click on contact the most you will get is webmail or an email address.
3. No company address information.
4. Great looking items at bargain prices that turn out to be tat.
If you want advice on the dispute process then post back for what you need.