Missouri targets Chinese assets to enforce $24 billion COVID-19 judgment

Missouri is taking bold action to hold China accountable for its role in the COVID-19 pandemic, with the state aggressively moving to seize Chinese-owned assets to collect on a landmark $24 billion civil judgment. Attorney General Andrew Bailey isn’t wasting any time in enforcing the ruling—one of the first of its kind—against the Chinese government. This civil judgment stems from China’s actions in covering up the origins of the virus and hoarding critical medical supplies during the early stages of the pandemic.

The court ruling, delivered by U.S. District Judge Stephen Limbaugh Jr., found that China’s mishandling of the pandemic caused massive harm to Missouri’s residents and economy. The $24 billion judgment is intended to compensate for those damages, but with China’s refusal to participate in the case, the state is moving forward with a strategy to collect it. The state’s bold move? Seizing Chinese-owned farmland and other assets across the U.S.

This action hinges on the Foreign Sovereign Immunities Act, a federal law that allows U.S. courts to identify, seize, and sell foreign-owned assets to fulfill valid judgments. Missouri is not limiting its search to just the state’s borders but is instead targeting assets anywhere in the U.S. where China might hold land or property. This opens the door for a nationwide asset search that could have wide-reaching effects on Chinese investments in the U.S.

The legal proceedings began in 2020 under former Attorney General Eric Schmitt, with China failing to defend itself against the charges. This led to a default ruling in Missouri’s favor, further solidifying the state’s legal standing. Despite China’s refusal to acknowledge or engage with the judgment, Missouri is pushing forward with its enforcement plans.

Bailey is also raising concerns about China’s increasing ownership of U.S. farmland, which he argues poses significant national security and economic risks. The state’s aggressive stance on asset seizure highlights growing tension between the U.S. and China, particularly in light of the escalating geopolitical and economic uncertainties. Missouri is setting a precedent for how states might approach foreign entities, especially as concerns about China’s influence in the U.S. continue to grow.

Sources:

https://justthenews.com/government/security/missouri-moving-seize-china-owned-farmland-assets-collect-landmark-24-billion

https://ago.mo.gov/attorney-general-andrew-bailey-secures-historic-24-billion-judgment-against-china-for-unleashing-the-covid-19-pandemic/