US court orders China to pay $24 billion for protective equipment ‘hoarding’ during Covid: Report
ByHT News Desk | Written by Lingamgunta Nirmitha Rao
Mar 09, 2025 12:01 PM IST
The Missouri district judge ruled that China stockpiled protective equipment while simultaneously providing misleading information about the Covid-19 virus.
A Missouri court ruled against the Chinese Communist Party (CCP) on Friday, awarding a $24 billion judgment after a federal judge found China liable for hoarding personal protective equipment (PPE) during the Covid-19 pandemic, the New York Post (NYP) reported.
Missouri initially filed the lawsuit in 2020, naming the CCP, the Wuhan Institute of Virology, and other Chinese entities. (File)(AFP)
Missouri initially filed the lawsuit in 2020, naming the CCP, the Wuhan Institute of Virology, and other Chinese entities. (File)(AFP)
Missouri district judge Stephen Limbaugh, Jr., in his ruling, said that China’s actions to stockpile PPE were carried out while it misrepresented key facts about the Covid-19 virus, including its existence, severity, and human-to-human transmissibility.
“Plaintiff has submitted into the record substantial evidence demonstrating as much,” Limbaugh wrote.
Missouri Attorney General Andrew Bailey hailed the ruling as a major step in holding China accountable, stating: “This is a landmark victory for Missouri and the United States in the fight to hold China accountable for unleashing Covid-19 on the world.”
Missouri initially filed the lawsuit in 2020, naming the CCP, the Wuhan Institute of Virology, and other Chinese entities. The suit alleged that China worsened the pandemic by restricting PPE production and blocking imports and exports.
According to the NYP report, the lawsuit also claimed that China took control of American factories producing PPE and stockpiled protective equipment meant for sale in the US market.
China had violated state and federal anti-monopoly laws: Judge
The judge sided with Attorney General Andrew Bailey, ruling that China violated state and federal anti-monopoly laws, which led to substantial economic harm for Missouri. The state suffered losses in tax revenue and faced increased PPE costs due to China’s actions.
“During the early months of the pandemic, Missouri spent millions more on PPE than it otherwise would have because of Defendants’ hoarding,” Judge Stephen Limbaugh, Jr. wrote.
Missouri claimed that due to China's actions, it paid over $122 million more for PPE than it normally would have and lost more than $8 billion in tax revenue.
Bailey criticised China for ignoring the lawsuit, stating: “China refused to show up to court, but that doesn’t mean they get away with causing untold suffering and economic devastation.”
He also vowed to enforce the $24 billion judgment, adding: “We intend to collect every penny by seizing Chinese-owned assets, including Missouri farmland.”
Bailey further stated that Missouri would collaborate with the Trump administration to “identify and seize Chinese-owned assets” to recover the damages if necessary.
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