In a dramatic escalation of a long-running legal feud, China has filed a lawsuit demanding over $50 billion from the US state of Missouri. This retaliatory action comes after Missouri pressed the US federal government to help it collect a separate, massive $25 billion court judgement against China related to the COVID-19 pandemic.
A Retaliatory Legal Strike from Wuhan
Missouri's Attorney General, Catherine Hanaway, revealed on Tuesday that the Chinese government has lodged a formal complaint with the Intermediate People's Court in Wuhan. The suit demands a public apology from the state and seeks compensation equivalent to $50.5 billion plus legal fees, alongside the right to claim further damages.
Hanaway dismissed the move as a "stalling tactic," asserting it proved Missouri had been "on the right side of this issue all along." The Chinese complaint, a copy of which was linked to Hanaway's news release, accuses Missouri and its former attorneys general of "fabricating enormous disinformation, and spreading stigmatizing and discriminating slanders" that harmed China's international reputation.
The Origins: Missouri's $25 Billion Pandemic Claim
The dispute stems from a lawsuit Missouri originally filed in 2020, alleging that China hoarded crucial personal protective equipment (PPE) like masks, gowns, and gloves during the early stages of the pandemic, thereby harming the state and its residents. China, which labelled the case "very absurd," declined to participate in the subsequent US trial.
After a complex legal journey, US District Judge Stephen Limbaugh ruled for Missouri earlier this year. With Chinese officials not responding, he accepted the state's damage estimate of over $8 billion, tripled it as permitted by federal law, and added 3.91% interest until collection, resulting in the staggering $25 billion judgement.
Diplomatic Tensions and Legal Hurdles
The case has significant diplomatic ramifications and faces substantial legal obstacles. Last month, Missouri escalated matters by asking the US State Department to formally notify China of its intent to pursue Chinese government-owned assets to satisfy the judgement.
China's Ministry of Foreign Affairs has consistently stated that its pandemic actions are not subject to US jurisdiction and does not recognise the ruling. Liu Pengyu, a spokesperson for the Chinese Embassy in Washington, reiterated this week that the original Missouri lawsuit was "a purely politically motivated manoeuvre." He added, "China firmly opposes it, will never accept it, and reserves the right to take strong countermeasures."
Legal experts have long questioned Missouri's ability to collect, as federal law generally provides foreign nations with sovereign immunity from lawsuits in American courts. The case's political nature is underscored by its lineage: it was initiated by then-Attorney General Eric Schmitt, a Trump ally, and continued by his successor Andrew Bailey, another Trump supporter, before landing with the appointed AG, Catherine Hanaway.
As the tit-for-tat litigation intensifies, it underscores the enduring geopolitical tensions and complex legal challenges surrounding accountability for the global pandemic, with billions of dollars and national prestige now formally on the line in courts on opposite sides of the world.
