Paypal is not "owned by China". It is an American company. Like MANY American companies, they're on the stock exchange, and anybody can buy shares. Check your facts before posting nonsense.
It did recently land a deal to do business in China, which is not at all the same as being owned by China.
99.9% it's a scam. PayPal doesn't send out emails like that. Hopefully your habit of accepting everything you read on the internet didn't lead you to follow any links on that email and enter your login information.
Lots of emails and even text messages come out that are scams. They say they're from a bank, or PayPal, or whatever. Suspicious activity, fraud activity, unknown purchase, whatever. Your account is frozen, click the link to go to your account. Pretty much all of them are scams. If you get one, NEVER click on the link. Always go to the account in question through your normal method or call using a known good phone number. If you click the link, it takes you to a dummy site that steals your information.
Most banks and similar that send text account alerts and emails will not include a link anymore for this reason.
