China Takes Missouri to Court in $53.5 Billion Defamation Lawsuit Over Alleged False Claims About COVID-19

A Chinese court has begun hearing a $53.5 billion defamation lawsuit brought against the US state of Missouri and several current and former officials over allegations that they spread false and damaging claims about China’s handling of the COVID-19 pandemic. The case marks a new development in a long-running legal dispute between the two sides, which began during the early months of the global health crisis in 2020.

The lawsuit was brought by the Wuhan municipal government, the Wuhan Institute of Virology and the Chinese Academy of Sciences. Proceedings are taking place at the Wuhan Intermediate People’s Court in central China. The plaintiffs accuse Missouri and its former attorneys general, Eric Schmitt and Andrew Bailey, as well as current Attorney General Catherine Hanaway, of promoting what they describe as fabricated and discriminatory allegations about the pandemic. They claim the accusations damaged their reputations and caused significant financial losses. Their demands include a public apology, restoration of their reputations and compensation of 356.44 billion yuan, equivalent to approximately $53.44 billion.

The latest case is closely connected to a lawsuit Missouri originally filed against Chinese authorities in April 2020. The US state accused China of mishandling the early stages of the pandemic and hoarding essential medical supplies, including protective masks, gowns and gloves, contributing to shortages and economic losses. Missouri sought financial compensation, arguing that the alleged actions had harmed its residents and businesses.

That legal battle eventually produced a roughly $25 billion judgment in Missouri’s favour after a federal judge accepted the state’s estimated damages when Chinese defendants did not participate in the proceedings. The original lawsuit was initially dismissed in 2022, but an appeals court allowed the allegation involving the hoarding of personal protective equipment to proceed. The court subsequently awarded more than $8 billion in estimated damages, which was tripled under federal law, with interest added.

The dispute intensified after Missouri recently sought assistance from the US government to pursue Chinese government-linked assets to enforce the judgment. China has rejected the original ruling, arguing that American courts have no jurisdiction over its actions and describing Missouri’s lawsuit as politically motivated. Missouri’s Attorney General Hanaway has, in turn, dismissed China’s latest legal action as an attempt to delay the enforcement of the American judgment. Former Attorney General Schmitt has also defended the original case.

The Chinese lawsuit now adds another complicated dimension to already strained relations between Washington and Beijing. However, the latest hearing does not mean China has been awarded compensation, nor does it establish that Missouri or the officials named in the case are legally responsible for defamation. The proceedings will determine how the Chinese court handles the allegations, while questions remain over whether any eventual judgment could be enforced against US state authorities. With both sides pursuing legal action over responsibility for the pandemic and its economic consequences, the dispute is becoming another point of tension in the broader US-China relationship.