Beijing is accused of putting lives at risk by stockpiling protective gear as the pandemic began.
A US federal judge has mandated that China pay $24 billion in damages to Missouri, following accusations that Beijing misled the global community about the Covid-19 outbreak and amassed protective equipment in the early stages of the crisis.
Missouri’s attorney general initially filed the lawsuit in April 2020, during the pandemic’s initial months. The state claimed that China endangered its residents by concealing details about the virus’s spread, which they contended delayed necessary responses. The lawsuit also alleged that China intentionally restricted protective equipment exports, leading to inflated prices and shortages. State lawyers argued that Covid-19 was a leading cause of death in Missouri during 2020 and 2021, attributing the crisis’s severity to Beijing’s actions.
In 2022, the case was initially dismissed under the Foreign Sovereign Immunities Act, which limits the ability of US courts to hold foreign governments liable for non-commercial actions. However, an appeals court later allowed the case to proceed, focusing on the narrower claim of supply hoarding.
On Friday, Judge Stephen N. Limbaugh determined that Missouri had presented “satisfactory” evidence to hold China accountable for “engaging in monopolistic actions to hoard PPE.”
Missouri Attorney General Andrew Bailey hailed the decision as “a landmark victory for Missouri and the US in the fight to hold China accountable for unleashing Covid-19 on the world.” He pledged that the state would “collect every penny,” potentially through the seizure of Chinese-owned assets within Missouri, including agricultural land.
China has rejected the lawsuit, calling it politically motivated.
Chinese embassy spokesman Liu Pengyu stated on Friday that “The so-called lawsuit has no basis in fact, law, or international precedent. China does not and will not accept it.” He cautioned that Beijing would take “reciprocal countermeasures” if the ruling harms China’s interests. Previously, Beijing has dismissed the case as a “farce,” asserting that US courts lack jurisdiction over sovereign actions undertaken by China.