Missouri Pursues Chinese Assets Over COVID-19 Lawsuit Judgment

Missouri has intensified efforts to collect on a $25 billion court judgment against the Chinese government, stemming from a lawsuit alleging that China hoarded personal protective equipment (PPE) during the early months of the COVID-19 pandemic. The state is seeking assistance from the Trump administration to notify China of its intentions to pursue assets owned wholly or partially by the Chinese government within the United States. This legal action is led by Missouri Attorney General Catherine Hanaway, who asserts that the state incurred significant damages due to the pandemic.

Associated Press

The lawsuit, initially filed in 2020 by former Attorney General Eric Schmitt, claimed that China's actions during the pandemic harmed Missouri residents. Although U.S. District Judge Stephen Limbaugh dismissed the case in 2022, an appeals court allowed the claim regarding the hoarding of PPE to proceed. Following China's non-response, Limbaugh accepted Missouri's estimated damages of over $8 billion, tripling the amount as permitted by federal law and adding interest.

Associated Press

Missouri's current strategy involves identifying Chinese properties that could be targeted for asset seizure. Hanaway's office has begun compiling a list of these properties, focusing on those fully owned by the Chinese government or companies with significant government stakes. However, legal experts have expressed skepticism about the feasibility of collecting the judgment, citing federal laws that typically protect foreign nations from lawsuits in U.S. courts.

Associated Press

In response to Missouri's actions, Liu Pengyu, a spokesperson for the Chinese Embassy in Washington, stated that China's pandemic measures were acts of national sovereignty and not subject to U.S. jurisdiction. He characterized the lawsuit as a "malicious frivolous lawsuit" that ignores objective facts and violates legal principles.

Associated Press

Hanaway emphasized the state's commitment to recovering damages, stating, “We think the state was damaged. We want to recover... It costs money to provide health care and other benefits to people as a result of the epidemic.”

Associated Press

Critics of Missouri's lawsuit argue that it represents a misuse of legal resources and could set a concerning precedent for international relations. Some legal analysts have pointed out that the lawsuit may be politically motivated, given the involvement of prominent Republican figures like Schmitt and Hanaway, who have ties to the Trump administration.

Associated Press

While Missouri's legal team is optimistic about the potential for asset recovery, there remains uncertainty regarding the enforceability of the judgment against a foreign government. The Chinese government has consistently rejected the legitimacy of the lawsuit, raising questions about the viability of Missouri's claims in international law.

Associated Press

As Missouri continues to pursue this legal avenue, the outcome remains uncertain. The state plans to formally notify the U.S. State Department of its intentions, and the legal process is expected to be lengthy, with potential implications for U.S.-China relations.

Associated Press