Missouri’s legal battle against China escalates as the state seeks assistance from the Trump administration to seize Chinese government-owned properties in the United States. This bold move aims to enforce a $25 billion court judgment, which Missouri attributes to damages caused by the COVID-19 pandemic—a claim that China has outright dismissed.
The state has requested that the U.S. State Department formally inform China of its intention to target assets with full or partial Chinese government ownership. Missouri Attorney General Catherine Hanaway revealed this strategy on Wednesday, linking it to allegations that China stockpiled personal protective equipment (PPE) during the pandemic’s early stages, adversely affecting Missouri and its citizens.
Earlier this year, a federal judge endorsed Missouri’s claims after China chose not to engage in the trial, labeling the lawsuit as “ very absurd ” when it was initially filed in 2020.
Despite China’s Ministry of Foreign Affairs asserting that their pandemic actions are beyond U.S. legal reach, Missouri is pressing forward. Legal scholars, however, are skeptical about Missouri’s chances, given that U.S. law typically protects foreign nations from domestic lawsuits.
Hanaway anticipates a lengthy legal process, explaining, “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.”
Missouri’s approach began with a letter to a federal court, requesting the judgment be sent to the secretary of state for delivery to China. The state is currently identifying Chinese properties eligible for seizure, focusing on those fully owned by the Chinese government or by entities with Chinese government stakes.
Liu Pengyu, a spokesperson for the Chinese Embassy in Washington, reiterated China’s stance, calling the lawsuit a “malicious frivolous lawsuit” and a political maneuver, further stating, “China firmly opposes them and will not accept any so-called default judgments.” The State Department has yet to comment on the issue.
This legal quest took an unusual trajectory. Initially, U.S. District Judge Stephen Limbaugh dismissed the case in 2022, ruling that Missouri couldn’t sue China. However, an appeals court allowed part of the lawsuit to proceed, specifically the claim that China hoarded PPE.
Following China’s non-response, Judge Limbaugh accepted Missouri’s damage estimate of over $8 billion, tripled it as per federal law, and added accruing interest of 3.91% until collection.
Originally filed by state Attorney General Eric Schmitt, a Trump ally now serving in the U.S. Senate, the lawsuit was pursued by his successors, including Attorney General Andrew Bailey, who resigned in September to join the FBI. Hanaway, appointed by Republican Governor Mike Kehoe, has now taken over the case.
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