For the first time in history, the U.S. state of Missouri secured for $24-billion in damages caused by the Covid-19 pandemic, in a lawsuit against the Chinese Communist Party (CCP).
The lawsuit—initiated in 2020 by then Missouri Attorney General, Eric Schmitt—has accused China of obstructing the production, purchase, and export of critical medical equipment, including PPE, during the height of the pandemic. In this first-of-its-kind landmark case, the U.S court has ruled that China has violated state and federal anti-monopoly laws, leading to increased PPE costs and substantial losses in tax revenue during the lockdown, when businesses were shattered.
The Chinese government—which sent no one to the final court hearing—is stating that it rejects the ruling, does not recognize the judgment and will take reciprocal countermeasures against harmed interests.
Missouri Attorney General Andrew Bailey says the state is intending to collect the judgment by seizing Chinese-owned assets, including farmland within Missouri.
Although the CCP is known to hold substantial assets in the U.S. and worldwide, these are often held indirectly through complex business entities, making them difficult to target under U.S. law. Seizing assets from a foreign government also involves complicated international laws and diplomatic relations.
Missouri’s victory for such a large judgment will certainly trigger a score of lawsuits against the CCP for economic damages caused by the Covid-19.
On top of Trump’s new tariff against Chinese companies, the outcome of this judgement will further deepen the two countries’ resentments, amassed from disputes over trade to fentanyl, internet security, advanced chips, Taiwan, and Asian Pacific military conflicts.
Missouri’s win rewrites U.S.-China relations in the playbook of foreign policy, making it clear that America will hold foreign governments accountable for their behavior on U.S. soil.