The lawsuit accused China of limiting the global supply of personal protective equipment, including masks and gloves.
A federal judge in Missouri ruled in favor of the state’s lawsuit against China, holding the Chinese Communist Party and other entities responsible for hoarding protective equipment during the early days of the pandemic. The ruling, which granted Missouri a $24 billion judgment, was the result of a case filed in 2020 that accused China of stockpiling masks, gloves, and other supplies while downplaying the severity of the virus.
Attorney General Andrew Bailey, who continued the lawsuit after taking office in 2023, said the decision was a major win in holding China accountable. He stated that Missouri intends to collect on the judgment by seizing Chinese-owned farmland in the state. Since the ruling was a default judgment—meaning China did not show up to defend itself in court—it remains unclear how Missouri will enforce the decision. The state has indicated that it may work with federal authorities to identify and seize Chinese assets as part of the effort.
The lawsuit accused China of limiting the global supply of personal protective equipment while misrepresenting key details about COVID-19’s transmission. Missouri District Judge Stephen Limbaugh Jr. found that China’s actions led to significantly higher costs for protective gear and a drop in tax revenue for the state. The ruling cited evidence showing Missouri spent more than $122 million extra on PPE than it would have under normal circumstances. Additionally, the judge agreed with the state’s argument that China’s actions violated anti-monopoly laws, contributing to economic harm.
China has denied the allegations and dismissed the ruling. In a statement, the Chinese Embassy called the lawsuit politically motivated and stated that it would not recognize the judgment. It also warned that China would take retaliatory measures if its assets were seized. The White House has not issued a response to the ruling.
The lawsuit did not take a position on how COVID-19 originated but focused instead on how the Chinese government handled information about the virus. Missouri’s case argued that China was aware of human-to-human transmission as early as September 2019 but delayed informing global health authorities. The World Health Organization did not receive official notification until December of that year.
Evidence submitted in court included reports from U.S. agencies and testimony from individuals with knowledge of early COVID-19 cases in China. According to the lawsuit, trade data showed that in early 2020, China drastically increased its imports of medical masks and other protective gear while restricting exports to other countries. The case also cited findings from the U.S. State Department that researchers at the Wuhan Institute of Virology experienced COVID-like symptoms in late 2019.
During the pandemic’s early months, Missouri’s health system faced shortages of critical supplies, which the lawsuit linked to China’s decision to restrict exports. The judge’s ruling stated that China’s actions placed other countries, including the United States, at a disadvantage by cutting off access to essential medical supplies.
Missouri’s case was first filed under former Attorney General Eric Schmitt, who accused China of engaging in a campaign of deception that led to the virus’s spread. Bailey continued the lawsuit after taking office and vowed to pursue every option to collect the awarded funds.
Missouri officials have acknowledged that enforcing the ruling will be difficult. Without China’s cooperation, the state will have to rely on legal avenues to seize assets. The state has suggested working with federal agencies to target Chinese-owned land and other investments in Missouri. However, the legal process of turning a default judgment into actual compensation remains uncertain.
More than 21,000 Missouri residents lost their lives due to complications from COVID-19 between 2020 and 2022. The ruling represents an attempt by the state to hold those it deems responsible accountable. While the financial outcome remains to be seen, Missouri officials see the judgment as a symbolic step toward justice for the economic and human toll caused by the pandemic.
Sources:
U.S. Judge Finds China Liable for Covid Missteps, Imposes $24 Billion Penalty
US judge holds China liable for Covid-19 cover-up, orders to pay $24 billion
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