Missouri’s $25 Billion Judgment Sparks Lawsuit from China

Missouri’s Attorney General, Catherine Hanaway, announced that China has filed a lawsuit in response to the state’s efforts to collect on a court judgment of approximately USD 25 billion related to the COVID-19 pandemic. The complaint was submitted to the Intermediate People’s Court in Wuhan, where China is demanding a public apology and seeking compensation of around USD 50.5 billion, along with legal fees and the right to claim additional damages.

The lawsuit stems from allegations made by Missouri that China hoarded essential personal protective equipment (PPE) during the initial stages of the pandemic, which the state claims resulted in significant harm to its residents. Earlier this year, a federal judge ruled in favor of Missouri after China failed to participate in the trial, labeling the lawsuit as “very absurd” when it was initially filed in 2020.

In a recent statement, Hanaway described China’s legal action as a “stalling tactic,” asserting that it confirms Missouri’s position on the matter. “We have been on the right side of this issue all along,” she stated in her announcement. Following the court ruling, Missouri intensified its efforts to collect on the judgment by requesting the US State Department to formally notify China of its intent to pursue assets owned partially or fully by the Chinese government to satisfy the court’s ruling.

Liu Pengyu, a spokesperson for the Chinese Embassy in Washington, expressed unfamiliarity with the specifics of the new case but characterized the previous lawsuit as a politically motivated action. “China firmly opposes it, will never accept it, and reserves the right to take strong countermeasures,” he stated. This sentiment was echoed by China’s Ministry of Foreign Affairs, which previously asserted that its actions during the pandemic fall outside the scope of US jurisdiction and that it does not recognize the Missouri ruling.

The legal situation has evolved in an unusual manner. Initially, US District Judge Stephen Limbaugh dismissed the lawsuit in 2022, stating that Missouri could not sue China, its Communist Party, or several other governmental and scientific agencies. However, an appeals court permitted one aspect of the lawsuit to continue: the claim that China hoarded PPE, including masks, gowns, and gloves. Without a response from Chinese officials, Limbaugh accepted Missouri’s estimated damages of over USD 8 billion, tripling that amount in accordance with federal law and adding interest of 3.91 percent until the judgment is collected.

The original lawsuit was filed by former Attorney General Eric Schmitt, an ally of former President Donald Trump, who later won election to the US Senate. The case was carried forward by Andrew Bailey, another Trump ally, who resigned in September 2023 to take a position as co-deputy director of the FBI. Hanaway, appointed as state attorney general by Republican Governor Mike Kehoe, has now taken over the case.

While the Associated Press has not obtained a copy of the complaint filed by China, a link to the document was included in Hanaway’s news release. The complaint alleges that Missouri, along with Schmitt and Bailey, has “fabricated enormous disinformation, and spread stigmatizing and discriminating slanders” that have damaged China’s reputation. In response, Schmitt has stated he would wear the lawsuit “like a badge of honour,” accusing Chinese authorities of attempting to absolve themselves of wrongdoing during the early days of the pandemic.

The evolving legal battle between Missouri and China highlights ongoing tensions in international relations concerning the pandemic and raises questions about the enforceability of judgments against foreign governments in US courts.