Massive Damages Ordered Against Foreign Government for Pandemic Role

Chinese flag currency stock chart calculator overlayed image
Interdependence of the world's countries. The impact of events in China on the dollar. Changes in exchange rates depending on new information. China's flag, dollars, and a growing chart.

A Missouri federal judge has ordered China’s Communist Party to pay $24 billion in damages for hoarding medical supplies during the COVID-19 pandemic, creating a roadmap for other states to potentially follow suit.

Quick Takes

  • Missouri won a historic $24 billion judgment against China for hoarding protective equipment during the COVID-19 pandemic, the largest in state history
  • Judge Stephen Limbaugh ruled China violated anti-monopoly laws, costing Missouri $122 million in PPE expenses and $8 billion in lost tax revenue
  • China did not appear in court to defend itself, and Missouri plans to collect by seizing Chinese-owned assets, including farmland
  • The ruling found that China suppressed information about COVID-19’s existence and transmissibility as early as September 2019
  • Missouri Attorney General Andrew Bailey called the ruling a “landmark victory” that could lead to more state lawsuits against China

Historic Judgment Against Chinese Communist Party

In an unprecedented legal decision, Judge Stephen Limbaugh Jr. has granted Missouri a $24 billion judgment against the Chinese Communist Party and related entities for their actions during the early stages of the COVID-19 pandemic. The ruling found sufficient evidence that China deliberately hoarded personal protective equipment (PPE), leading to significant shortages and price surges in the United States. This massive judgment, six times larger than any previous ruling in Missouri history, represents the first successful state case against China related to pandemic conduct. The lawsuit initially filed five years ago by former Missouri Attorney General Eric Schmitt was dismissed but later reinstated by a court of appeals when it focused specifically on the supply hoarding accusations.

The defendants named in the lawsuit include the People’s Republic of China, the Chinese Communist Party, the National Health Commission of China, and the Wuhan Institute of Virology. Judge Limbaugh determined that Missouri had provided satisfactory evidence establishing the defendants’ liability under both state and federal anti-monopoly laws. The court’s finding concluded that China’s deliberate actions caused significant harm to Missouri citizens and the state government, including substantial financial damages during the height of the pandemic’s initial outbreak and spread. The decision represents a potentially groundbreaking shift in how American institutions might seek accountability for pandemic-related damages.

China’s Hoarding Campaign and Cover-Up

The court’s ruling detailed evidence of China’s systematic campaign to monopolize global PPE supplies while simultaneously concealing information about the virus. According to court documents, China nationalized American-owned PPE factories operating within its borders and restricted exports of protective equipment at a critical time when the virus was spreading worldwide. This coordinated effort occurred while Chinese authorities were actively suppressing information about COVID-19’s existence, scope, and human-to-human transmission capabilities, which the judgment states was happening as early as September 2019, months before public acknowledgment of the outbreak.

“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 judgment specifically noted that Missouri spent over $122 million more on PPE than it would have under normal market conditions as a direct result of China’s hoarding practices. Additionally, the state lost over $8 billion in tax revenue due to the economic disruption caused by these actions. Judge Limbaugh determined these damages warranted tripling under statutory provisions for particularly egregious violations of anti-monopoly laws, resulting in the final $24 billion figure. The ruling creates a potentially significant precedent for how nations and states might establish liability for pandemic-related economic damages caused by deliberate market manipulation.

Collection Efforts and Next Steps

Missouri Attorney General Andrew Bailey has made it clear that the state intends to vigorously pursue collection of this judgment despite China’s refusal to participate in the legal proceedings. Bailey announced plans to seize Chinese-owned assets within reach of U.S. authorities, specifically mentioning Chinese-owned agricultural land in Missouri as potential targets. The judgment creates a novel situation in international law regarding sovereign immunity and enforcement mechanisms for such significant monetary awards against a foreign government that refuses to acknowledge the court’s jurisdiction.

The Missouri Attorney General has suggested this ruling could serve as a blueprint for other states to pursue similar legal action against China. With Bailey publicly challenging China to “pay up — or we start seizing assets and farmland,” the case has significant implications for U.S.-China relations and international property rights. Legal experts note that while collecting the full judgment may prove challenging, the ruling itself represents an important symbolic victory in establishing accountability for pandemic-related conduct and could trigger diplomatic and economic responses from both nations as the process unfolds.