Is this legal?

My understanding is that it isn’t. I’m genuinely curious for anyone who has dealt with this scenario…

The director of a global payments firm just showed me how RMB flows from Chinese buying from overseas sellers on Amazon.cn (Amazon in China). The key point is that those sellers are transacting on Amazon.cn (a China domestic platform) and settling in local RMB via a third party in China who can repatriate funds in USD or Euro.

That is different from Alibaba: overseas sellers must list on Tmall Global or TaoBao Global and hold offshore Alipay accounts. So when a consumer finds a Tmall Global listing via TaoBao search, the actual transaction technically takes place offshore.

Seems like Amazon is walking a fine line…am I understanding this correctly?