I was selling ****, ahem, quality items  from China using my UK account and another one I made when I arrived. I had no problems, I occasionally used a VPN but that was only to speed things up when my normal connection was being ****.
I had no problems at all with the original account. The second one (set up with a UK address, but made when in China) needed documents, id etc sending but that was no problem.
About the item location - I used to lie. I left the location as the UK and then mentioned in the listing that I was sending from China. You can get busted by ebay for this - but I never had any problems with it.
Then I got a **** load of vero warnings and suspensions and that crap so I changed my location to China just incase someone reported me for lying about the item location. It made little difference to be honest, I was still selling a fair amount of stuff.
So basically avoid VPN's, they are not necessary. What is necessary is the documentation to send to them to back up who you are and what your permanent address is.
That's my experience anyway.
Oh and about the 10 item limit - there's no way around it apart from opening multiple accounts.
Have you tried opening a legit thai account? I have tried and failed miserably trying to get a legit Chinese account. I have Chinese friends who also can't get accounts.
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