A Missouri court has ordered China to pay $24 billion for hoarding protective equipment during the COVID-19 pandemic, setting the stage for a historic confrontation over international accountability and the seizure of Chinese-owned assets in the United States.
Top Takeaways
- Federal Judge Stephen Limbaugh ruled in favor of Missouri, awarding $24 billion against China’s Communist Party for hoarding medical supplies during the pandemic.
- Attorney General Andrew Bailey plans to collect the judgment by seizing Chinese-owned assets, including Missouri farmland.
- The lawsuit accused China of nationalizing American PPE factories and suppressing early virus information as far back as September 2019.
- Missouri reportedly spent over $122 million more on PPE and lost over $8 billion in tax revenue due to China’s actions.
- China did not appear in court to defend itself against the allegations, leading to a default judgment.
Historic Ruling Against China
A federal judge has handed down what Missouri officials are calling a landmark judgment against the Chinese Communist Party, holding China liable for $24 billion in damages related to its actions during the early stages of the COVID-19 pandemic. The ruling, delivered by Judge Stephen Limbaugh Jr., found that China violated both state and federal anti-monopoly laws by hoarding personal protective equipment (PPE) while simultaneously suppressing crucial information about the virus, causing significant financial and public health harm to Missouri.
The case represents the largest judgment in Missouri’s history—six times larger than any previous judgment awarded to the state. Originally filed five years ago by former Attorney General Eric Schmitt, the lawsuit was initially dismissed but later reinstated by a court of appeals, focusing specifically on the accusations of supply hoarding rather than broader claims about the origin of the virus itself. The defendants named in the lawsuit include the People’s Republic of China, the Communist Party of China, and the Wuhan Institute of Virology.
Allegations of Deliberate Suppression and Hoarding
According to court documents, China engaged in a systematic campaign to suppress information about COVID-19’s existence and transmissibility as early as September 2019. The judgment states that China concealed critical information while simultaneously acting to secure global supplies of protective equipment, creating artificial shortages and driving up prices worldwide. Missouri’s lawsuit specifically accused Chinese entities of disrupting PPE production and supply chains by nationalizing American factories in China and redirecting materials.
“China’s campaign to hoard the global supply of PPE was performed in conjunction with its repeated misrepresentations on the existence, and then scope and human-to-human transmissibility of, the COVID-19 virus,” wrote Judge Stephen Limbaugh, Jr. in his ruling.
In the court’s assessment, these actions directly harmed Missouri, causing the state to spend approximately $122 million more on protective equipment than it would have under normal market conditions. Additionally, Missouri reportedly lost over $8 billion in tax revenue due to economic disruptions linked to the pandemic and supply shortages. The court found these damages sufficiently proven and, citing relevant statutes, tripled the financial penalty to exceed $24 billion.
Collection Efforts and Future Implications
China did not participate in the court proceedings, leading to a default judgment. Now, Missouri faces the significant challenge of actually collecting the awarded damages. Attorney General Bailey has taken an aggressive stance on enforcement, publicly declaring intentions to seize Chinese-owned assets within reach of state authorities. This includes farmland and other property in Missouri that may be connected to Chinese ownership or investment.
“This is a landmark victory for Missouri and the United States in the fight to hold China accountable for unleashing COVID-19 on the world,” stated Bailey. “China refused to show up to court, but that doesn’t mean they get away with causing untold suffering and economic devastation. We intend to collect every penny by seizing Chinese-owned assets, including Missouri farmland.”
https://twitter.com/AGAndrewBailey/status/1898127279580233885
The Missouri case could potentially serve as a template for other states seeking similar judgments against China. Attorney General Bailey has suggested that additional state lawsuits might follow, creating a potential cascade of legal actions against Chinese interests in the United States. Legal experts note that collecting international judgments presents significant challenges, but the ruling nevertheless represents an unprecedented attempt to establish accountability for pandemic-related damages through the American court system.
