The state of Missouri filed a court motion on Monday, October 19, 2026, urging a federal judge to reject a legal challenge by Chinese government entities attempting to overturn a $24.5 billion default judgment. The judgment stems from a lawsuit Missouri filed in 2020 related to the COVID-19 pandemic. Missouri officials argue that the Chinese defendants, including Hubei province and the Chinese Academy of Sciences, waited too long to appear in U.S. court to contest the case.
Missouri originally sued the People’s Republic of China, the Chinese Communist Party, and related entities in April 2020, seeking damages for economic losses during the pandemic. Although a judge initially dismissed the case, a federal appeals court revived a portion of the lawsuit in 2024. The active claim alleges that the defendants monopolized the supply of personal protective equipment (PPE), which Missouri argues drove up prices and caused economic harm to the state.
In March 2025, U.S. District Judge Stephen Limbaugh Jr. entered a default judgment after the defendants failed to respond to the proceedings. The final award reached $24.5 billion because federal law required tripling the base compensatory damages of $8 billion. In August 2026, Hubei province and the Chinese Academy of Sciences filed a motion to set aside the judgment, arguing that the court lacks jurisdiction over them and that the ruling interferes with foreign affairs.
Missouri Attorney General Catherine Hanaway announced on Tuesday, October 20, 2026, that the state is moving forward with the service and enforcement phase of the judgment. The Attorney General’s Office has submitted service packets to a court clerk to be forwarded to the U.S. State Department for diplomatic service on several entities, including the National Health Commission of China and the People’s Government of Wuhan City. Missouri intends to seek court certification to begin seizing Chinese-owned assets, such as farmland and financial holdings, to satisfy the debt.
Separately, Hubei province and other plaintiffs filed a lawsuit against Missouri in a Chinese court in April 2025. That suit accuses Missouri officials of damaging their reputations through the COVID-19 litigation, which they characterized as "vexatious." The Chinese lawsuit seeks public apologies and approximately $53 billion in damages.
The Attorney General’s Office intends to seize Chinese-owned assets within the state, which could lead to the forced sale or transfer of real property, including agricultural land, and the freezing of financial interests held by the named Chinese government entities.
The judgment represents one of the largest awards ever issued against a foreign sovereign in a U.S. court. The enforcement process under the Foreign Sovereign Immunities Act (FSIA) addresses whether U.S. states can hold foreign governments financially liable for global health events and market fluctuations.
The next steps involve the U.S. State Department delivering formal judgment-service packets to the Chinese government. Once diplomatic service is confirmed, Missouri will return to the U.S. District Court for the Eastern District of Missouri to request a certification of compliance. Only after obtaining this certification can the state legally begin the process of seizing assets. A specific date for this certification has not yet been set.