Whether you can sue the company depends on whether the California courts have personal jurisdiction over the Chinese company. Generally, if a company voluntarily chooses to do business in a certain state, then there is a presumption of jurisdiction against that company. The more important question is if it is worth it to sue this company. How much is the product worth? It sounds like you have a small claims action against them but I would need to know more. If they are a foreign entity with no agents in California, they probably won't appear for the small claims action, and you will get a default judgment against them. Enforcing that judgment will be tricky though. Best of luck.
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Unfortunately a business risk in doing business over the Internet with a foreign company. Lawsuit will be a waste of time and money unless you are wealthy and the price of the product was significant. Best bet is to threaten them with ruining their name here in the US and giving them a black eye publicly and let them know you filed a complaint with the U.S. Attorneys office in you state so that they will now we watched .... And sending letters to your Senator and Congressman......maybe this will make them think twice and pay you to make you go away--- and save you a lot of money in legal fees you would spend and perhaps get nowhere.
My answer is not intended to be giving legal advice and this topic can be a complex area where the advice of a licensed attorney in your State should be obtained.
Unless that company has a presence here in the United States, legal action against them here is not likely to be worth your while. Even if you could establish jurisdiction against them and could get a judgment, you'd have to find assets or property against which the judgment could be enforced. If they are in China - that means going to China with your judgment and trying to get their legal system to recognize your judgment and enforce it against the Company.
Obviously the resources that would be required to do this would be substantial.
Legal disclaimer: I am licensed to practice law in the state of Washington and the answer provided above is for general information purposes only and should not be relied on as specific legal advice. This answer does not form an attorney-client relationship. You should consult with an attorney of your choice to fully advise you about your legal rights and obligations.