Massive Legal Verdict: Missouri Court’s Unprecedented Decision Involving China and COVID-19

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A Missouri federal court has ordered China’s Communist Party to pay $24 billion in damages for hoarding medical supplies during COVID-19, marking what could become a watershed moment in holding foreign powers accountable for pandemic-related actions.

Key Takeaways

  • Federal Judge Stephen Limbaugh ruled in favor of Missouri, awarding a historic $24 billion judgment against China for hoarding protective equipment during the COVID-19 pandemic
  • China did not appear in court to defend itself, and Missouri Attorney General Andrew Bailey has stated plans to seize Chinese-owned assets, including farmland, to collect the judgment
  • The lawsuit accused Chinese entities of disrupting global PPE supply chains, causing Missouri to spend over $122 million more on protective equipment
  • The court found that China suppressed information about COVID-19’s existence and transmissibility as early as September 2019
  • This represents the largest judgment in Missouri history, six times larger than any previous judgment in the state

Historic Ruling Against China

Missouri has secured what state officials are calling a landmark $24 billion judgment against the Chinese Communist Party (CCP) and other Chinese entities for their conduct during the early days of the COVID-19 pandemic. Federal Judge Stephen Limbaugh Jr. ruled that Missouri provided satisfactory evidence establishing the defendants’ liability, particularly regarding allegations that China hoarded personal protective equipment (PPE), severely disrupting global supply chains. The ruling comes five years after former Missouri Attorney General Eric Schmitt initially filed the lawsuit, which was dismissed but later reinstated by a court of appeals.

The judgment is unprecedented in its scope, representing the largest court award in Missouri history—six times larger than any previous judgment. Defendants named in the lawsuit include the People’s Republic of China, the Communist Party of China, the National Health Commission of China, the Ministry of Emergency Management of China, the Ministry of Civil Affairs of China, the People’s Government of Hubei Province, and the Wuhan Institute of Virology. None of these entities appeared in court to defend themselves against the allegations.

Supply Hoarding and Economic Damage

The lawsuit focused specifically on accusations that Chinese authorities nationalized American PPE factories operating in China and deliberately hoarded protective equipment available for sale in the United States. Judge Limbaugh determined that these actions violated both state and federal anti-monopoly laws, causing significant economic harm to Missouri. The state reportedly spent over $122 million more on PPE than it otherwise would have and lost more than $8 billion in tax revenue due to the pandemic’s economic impact.

“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 Limbaugh, Jr. in his ruling.

The court also found that China systematically suppressed critical information about the virus, determining that the CCP concealed information about COVID-19’s existence and human-to-human transmission capabilities as early as September 2019. The judgment states that Chinese authorities used censorship to restrict public knowledge about the virus while simultaneously securing global supplies of protective equipment.

Collection Efforts and Broader Implications

Missouri Attorney General Andrew Bailey has taken an aggressive stance regarding collecting the judgment, stating that his office intends to seize Chinese-owned assets within reach of Missouri authorities. “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,” Bailey stated.

The court tripled the original damage assessment to over $24 billion, citing that the CCP’s actions met the legal requirements for damages under relevant statutes. Bailey has suggested that this ruling could set a precedent for other states to pursue similar legal actions against China. Legal experts note that while the judgment is significant, actually collecting damages from a foreign government presents substantial challenges under international law and diplomatic protocols.