China sues Missouri over $25B COVID judgment, demanding apology and $50.5B compensation. Missouri’s AG defends stance, citing legal and diplomatic tensions.
In a move that has rattled both U.S. and Chinese officials, China has filed a counter-lawsuit against Missouri over a roughly $25 billion judgment it owes for COVID-19 pandemic-related damages.
China Files Counterclaim
Attorney General Catherine Hanaway released a statement Tuesday that China is demanding a public apology from the state in a complaint filed in the Intermediate People’s Court of Wuhan. The complaint also seeks compensation of $50.5 billion, plus legal fees, and the right to pursue further damages.
Hanaway said, “This lawsuit is a stalling tactic and tells me that we have been on the right side of this issue all along.”
Background of the Pandemic Dispute
The dispute stems from a Missouri lawsuit alleging that China hoarded personal protective equipment during the early months of the pandemic, harming the state and its residents. A federal judge ruled for Missouri earlier this year after China declined to participate in the trial. The court described the 2020 filing as “very absurd.”
Legal and Diplomatic Reactions
Last month, Missouri escalated its collection efforts by asking the U.S. State Department to formally notify China that the state intends to pursue assets with full or partial Chinese government ownership to satisfy the judgment.
Liu Pengyu, a spokesperson for the Chinese Embassy in Washington, said in an emailed statement Wednesday that he was not familiar with the specifics of the new case. He described the earlier Missouri lawsuit as “a purely politically motivated maneuver.” He added that China firmly opposes it, will never accept it, and reserves the right to take strong countermeasures.
China’s Ministry of Foreign Affairs has stated that its actions during the pandemic are not subject to U.S. jurisdiction and that it does not recognize the ruling.
Legal experts have questioned whether Missouri can collect on the judgment, noting that federal law generally shields foreign nations from lawsuits in U.S. courts.
The case has followed an unusual path. U.S. District Judge Stephen Limbaugh dismissed the lawsuit in 2022, saying Missouri could not sue China, its Communist Party, and seven other agencies. An appeals court allowed one part of the lawsuit to proceed: the allegation that China hoarded PPE such as respirator masks, medical gowns, and gloves. After Chinese officials did not respond, Limbaugh accepted Missouri’s estimate of more than $8 billion in past and potential future damages, tripled it as federal law allows, and added 3.91% interest until it is collected.
The lawsuit was originally filed by state Attorney General Eric Schmitt, a Trump ally, and later carried by Attorney General Andrew Bailey, another Trump ally who resigned in September to become co-deputy director of the FBI. Hanaway, a former U.S. attorney and Missouri House speaker, inherited the case when she was appointed state attorney general by Republican Gov. Mike Kehoe.
The Associated Press could not obtain its own copy of the Chinese-filed complaint, but a copy was linked to Hanaway’s news release. The complaint accuses Missouri, Schmitt, and Bailey of “fabricating enormous disinformation, and spreading stigmatizing and discriminating slanders” that have harmed China’s reputation.
Schmitt said he would wear the suit “like a badge of honor” and accused Chinese authorities of “attempting to absolve themselves of all wrongdoing in the early days of the pandemic.”
Key Takeaways
- China has filed a counter-lawsuit demanding a public apology and $50.5 billion in compensation.
- Missouri’s AG defends the state’s position, citing legal and diplomatic arguments.
- The case reflects broader tensions over jurisdiction and pandemic accountability.
The lawsuit, now a complex legal and diplomatic showdown, underscores the challenges of holding foreign governments accountable for pandemic-related actions and the limits of U.S. courts in adjudicating such disputes.
