Sunday, November 23, 2025

Missouri Seeks to Seize Chinese Assets, Farmland After Landmark $25 Billion COVID-19 Judgment

CaliToday (24/11/2025): In a stunning legal maneuver with global diplomatic ramifications, Missouri Attorney General Katherine Hannaway announced on November 19 that her office has completed all necessary legal steps to enforce a massive court judgment, paving the way to potentially seize Chinese-owned farmland and real estate within the state.


The judgment, exceeding $25 billion, was awarded earlier this year after a federal court found the People’s Republic of China (PRC) liable for actions that "led to and exacerbated the pandemic."

Diplomatic Delivery: The Path to Asset Seizure

Attorney General Hannaway confirmed that her office has filed the official judgment documents with the Clerk of the U.S. District Court in Cape Girardeau. These documents have now been transmitted to the U.S. Department of State, which will undertake the crucial process of diplomatic service to six Chinese entities, including the Government of the PRC, the Hubei Provincial Government, and the Wuhan Municipal Government.

“With the statutory time limits now expired, we are moving full speed ahead to ensure the people of Missouri realize the benefit of this judgment,” Hannaway stated. “China inflicted enormous damage on our citizens and our economy, and we will pursue accountability and recover every dime we can—starting with China’s assets in Missouri, including farmland.”

This is not only the largest judgment secured by Missouri against a foreign government but is also considered one of the largest against a foreign state in U.S. history.

Once the Department of State confirms successful diplomatic service, Missouri will return to federal court to seek an execution certification. This will enable the state to begin seizing various Chinese-owned local assets, including real estate, agricultural land, and financial holdings.

Enforcement Hurdles: Sovereignty and Immunity

The effort to enforce the colossal judgment faces steep legal and diplomatic challenges.

  • Sovereign Immunity: Beijing has vehemently stated it does not recognize the judgment. Previously, the Chinese Foreign Ministry asserted that its actions during the pandemic fall under "national sovereign conduct, which is not subject to the jurisdiction of U.S. courts." U.S. federal law generally grants broad immunity to foreign governments.

  • Legal Skepticism: Some legal experts have expressed doubt about Missouri’s ability to successfully execute the judgment, noting the significant legal hurdles surrounding the Foreign Sovereign Immunities Act (FSIA).

  • Requesting Federal Support: Missouri is escalating the political pressure, formally requesting the Trump Administration's aid in enforcing the $25 billion ruling. Hannaway has formally asked the Department of State to notify the Chinese government that the state intends to recover assets to satisfy the judgment.

Hannaway acknowledged the difficulties, conceding that the enforcement will be “a long process,” but insisted, “Missouri suffered enormous damage from the pandemic, and we must recover what we have lost.”

The Case’s Journey: From Dismissal to Billions

The lawsuit, originally filed in 2020 by then-Attorney General Eric Schmitt, has seen several twists:

  • Partial Reinstatement: U.S. District Judge Stephen Limbaugh initially dismissed the lawsuit in 2022. However, an appeals court allowed certain claims to proceed specifically, the allegation that China engaged in market-based commercial activity by hoarding crucial Personal Protective Equipment (PPE) like masks, gowns, and gloves, thereby harming Missouri’s interests.

  • Default Judgment: After Chinese officials failed to respond to the amended claims, Judge Limbaugh accepted Missouri's calculation of over $8 billion in damages. This amount was then tripled under federal law, with an added 3.91% interest rate until recovery.

The current legal charge is led by AG Hannaway, a former federal prosecutor and state House Speaker, who stated forcefully: “This judgment belongs to the people of Missouri. They deserve accountability, the truth, and compensation. We will do everything we can to ensure this judgment is executed.”

While the state is compiling a list of seizable Chinese assets, focusing on property fully owned or equity-held by the Chinese government, the final details regarding the allocation of recovered funds remain unannounced.


CaliToday.Net