China Files Counter-Lawsuit Against Missouri Amid $24 Billion COVID-19 Judgment Collection Efforts

The People's Republic of China has initiated a lawsuit against the U.S. state of Missouri in the Intermediate People's Court of Wuhan, demanding a public apology and $50.5 billion in compensation. This development follows Missouri's efforts to collect on a roughly $25 billion court judgment it secured against China earlier this year related to the COVID-19 pandemic. Missouri Attorney General Catherine Hanaway described China's lawsuit as a 'stalling tactic'.

Missouri's Initial Lawsuit and Judgment

Missouri's legal action against China began in April 2020, when then-Attorney General Eric Schmitt filed a lawsuit alleging that China hoarded personal protective equipment (PPE) during the initial stages of the COVID-19 pandemic, thereby harming the state and its residents. The lawsuit initially faced dismissal in 2022 by U.S. District Judge Stephen Limbaugh due to foreign sovereign immunity. However, the U.S. Court of Appeals for the Eighth Circuit allowed a portion of the lawsuit, specifically concerning the alleged PPE hoarding, to proceed in January 2024, citing the 'commercial activity' exception of the Foreign Sovereign Immunities Act (FSIA).

China declined to participate in the trial. Consequently, a federal judge in the Eastern District of Missouri, Judge Stephen N. Limbaugh, Jr., entered a default judgment against China on March 7, 2025, for $24 billion. This amount included tripled damages from an initial estimate of over $8 billion, as permitted by federal law, plus 3.91% interest, bringing the total to approximately $25 billion. This judgment was secured by former Attorney General Andrew Bailey and was noted as six times larger than any previous judgment in Missouri's history.

China's Counter-Action and Stance

In November 2025, Missouri escalated its efforts to collect the judgment, with Attorney General Catherine Hanaway asking the U.S. State Department to formally notify China of the state's intent to pursue assets with full or partial Chinese government ownership. In response, China filed its counter-lawsuit in Wuhan in December 2025. China's government has consistently maintained that Missouri's initial lawsuit was 'very absurd' when filed in 2020 and a 'purely politically motivated maneuver'.

Liu Pengyu, a spokesperson for the Chinese Embassy in Washington, stated that China 'firmly opposes it, will never accept it, and reserves the right to take strong countermeasures'. China's Ministry of Foreign Affairs has also asserted that its actions during the pandemic are not subject to U.S. jurisdiction and that it does not recognize the U.S. court's ruling.

Uncertainty Surrounds Collection Efforts

The legal battle highlights complex issues of international law and sovereign immunity. Legal experts have expressed skepticism regarding Missouri's ability to successfully collect on the $24 billion judgment, as federal law generally provides foreign nations with immunity from lawsuits in U.S. courts. Despite these challenges, Attorney General Hanaway has indicated that Missouri is committed to recovering damages, stating, 'We think the state was damaged. We want to recover.'

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5 Comments

Avatar of Fuerza

Fuerza

It's understandable Missouri wants compensation for COVID-related harm, yet pursuing assets of a sovereign nation sets a dangerous precedent. This might open a Pandora's box of international litigation for other countries.

Avatar of Manolo Noriega

Manolo Noriega

Good luck collecting that $24 billion. It's never going to happen.

Avatar of Fuerza

Fuerza

Missouri's determination to collect is admirable given the perceived damages. However, China's firm stance on sovereign immunity means this will likely be a prolonged, possibly fruitless, legal and diplomatic struggle with no clear end.

Avatar of Ongania

Ongania

Finally, a state standing up to China's global dominance.

Avatar of Manolo Noriega

Manolo Noriega

While holding foreign nations accountable is important, the practicalities of collecting such a massive judgment against China are incredibly slim. This risks further damaging diplomatic ties.

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