While his paternal ancestors of Chinese roots had a history of being involved in the lumber industry since the 19th century, Lee's family did not inherit much wealth.

[5] In 2007, he was recruited by then coach Dindo Pumaren of the University of the East, which at that time had formidable backcourt players like Raphy Reyes, Paul Zamar, James Martinez and Marcy Arellano.

[13] In his PBA debut, Paul Lee recorded 17 points, 2 rebounds and 4 assists in 25 minutes of playing time on a 107–100 win over the Alaska Aces.

After Lee returned from Spain following his Gilas stint in the 2014 FIBA Basketball World Cup, he went to a sabbatical by not showing up to Rain or Shine practice or even talking to the media, creating speculations of him pushing through signing up with another team.

As of the end of 2023–24 season[18][19] Lee was part of the Philippine national team debuting at the 2014 FIBA Asia Cup.

[20] Due to the circumstances of his birth, Lee competed as Paul John Dalistan, using his mother's maiden surname.

[2] He led the team to a bronze medal finish in the Asian tournament after converting three crucial free-throws with no time remaining against host China.

[21][22][23] Lee also competed in the 2014 FIBA Basketball World Cup and the 2014 Asian Games but injuries caused him to get sidelined the following year.