China’s PPE Hoarding During COVID Leads to $24B Penalty, Judge Says

In a landmark decision, a Missouri federal judge has ordered the Chinese government to pay $24 billion in damages for hoarding personal protective equipment (PPE) during the early stages of the COVID-19 pandemic. This ruling marks a significant development in holding a foreign nation accountable for its actions during the global health crisis, according to a new story from the New York Post. 

Background of the Lawsuit

In April 2020, Missouri became the first state to sue China over its handling of the COVID-19 pandemic. The lawsuit alleged that Chinese authorities suppressed crucial information, arrested whistleblowers, and denied the virus's human-to-human transmissibility, leading to widespread global transmission. A key component of the lawsuit was the accusation that China hoarded PPE, including masks and gloves, exacerbating shortages and inflating prices worldwide.

Court's Findings

The court found that China's actions violated state and federal anti-monopoly laws. Specifically, the judge noted that during the early months of the pandemic, Missouri spent millions more on PPE than it otherwise would have because of China's hoarding. The state claimed it spent over $122 million more for PPE and lost more than $8 billion in tax revenue due to these actions. 

China's Position

The Chinese government has consistently dismissed such lawsuits as baseless. In response to Missouri's legal actions, a Chinese embassy spokesperson previously labeled the proceedings as a "farce," asserting that U.S. courts have no jurisdiction over the sovereign actions taken by Chinese governments in response to the epidemic, according to ​Newsweek.

Next Steps

Collecting the $24 billion judgment presents significant challenges, particularly given China's likely refusal to acknowledge the court's authority. Missouri's strategy to seize Chinese-owned assets within the state may lead to complex legal and diplomatic disputes. The federal government's involvement could be pivotal in enforcing the judgment and navigating the broader implications for U.S.-China relations.

🤔Nurses, share your thoughts in the discussion forum below.