Historic Legal Remedy – Missouri Taking Back Chinese-Owned Farmland

Gavel on pile of hundred dollar bills

Missouri begins seizing Chinese-owned farmland to collect on its landmark $24 billion pandemic judgment, signaling a pivotal shift in holding foreign powers accountable for pandemic damages.

Quick Takes

  • Missouri won a $24 billion judgment against China for covering up the pandemic’s origins and hoarding protective equipment
  • U.S. District Court Judge Stephen Limbaugh Jr. issued a default judgment after China refused to participate in proceedings
  • Missouri is now identifying and seizing Chinese-owned farmland and assets in the state to satisfy the judgment
  • China owns approximately 384,000 acres of U.S. farmland, raising national security concerns due to proximity to military installations
  • China has rejected the ruling as having “no basis in fact or law” and threatened reciprocal countermeasures

Historic COVID-19 Judgment Against China

Missouri has begun the unprecedented process of seizing Chinese-owned farmland and assets within its borders to collect on a landmark $24 billion judgment against China. The judgment stems from a lawsuit filed in 2020 alleging that China and various Chinese entities deliberately concealed information about the pandemic’s origins and severity while simultaneously hoarding personal protective equipment (PPE) needed by Americans. This legal victory represents the first successful state-level action holding China financially accountable for its role in the pandemic that devastated American lives and livelihoods.

U.S. District Court Judge Stephen N. Limbaugh Jr. ruled that “China was misleading the world about the dangers and scope of the pandemic.” The judgment was issued by default after China refused to participate in the proceedings, a common tactic used by the Chinese government when faced with international legal challenges. Judge Limbaugh determined that China’s actions directly harmed Missouri citizens, businesses, and the state government itself, which reported spending over $122 million more on PPE than it would have otherwise and losing approximately $8 billion in tax revenue due to the pandemic’s economic impact.

Seizing Assets to Enforce the Judgment

Missouri Attorney General Andrew Bailey has initiated the process of identifying Chinese government-owned assets within the state that can be seized to satisfy the judgment. “Missouri will start to identify and begin going to court to have court orders issued to seize those assets to make good on that judgment,” Bailey stated. The state is pursuing this action under the Foreign Sovereign Immunities Act, which allows for the seizure of foreign government assets to satisfy court judgments in certain circumstances, including those involving commercial activities with direct effects in the United States.

“This is a landmark victory for Missouri and the United States in the fight to hold China accountable for unleashing COVID-19 on the world,” the attorney general said in a statement.

While the exact amount of Chinese-owned farmland in Missouri has not been publicly specified, the enforcement action targets agricultural properties and other assets owned by Chinese entities. The state is expected to collaborate with the Trump administration to identify properties eligible for seizure. The process may face legal challenges, as distinguishing between assets owned directly by the Chinese government versus those owned by Chinese nationals or corporations with government ties could become complicated.

National Security Concerns Over Foreign Land Ownership

The lawsuit and subsequent asset seizure highlight growing concerns about Chinese ownership of American farmland, particularly properties near military installations. According to U.S. Department of Agriculture data, foreign entities owned approximately 40.8 million acres of American agricultural land as of 2021, with Chinese interests controlling about 384,000 acres nationally. This figure may be understated, as it doesn’t account for purchases made through shell companies or domestic intermediaries with ties to China.

“China’s campaign to hoard the global supply of PPE was performed in conjunction with its repeated misrepresentations on the existence, and then scope and human-to-human transmissibility of, the pandemic virus,” Missouri District Judge Stephen Limbaugh, Jr., wrote in his ruling.

The Treasury Department recently proposed rules to block Chinese corporations from purchasing land near U.S. military bases, reflecting escalating security concerns. During his successful 2024 presidential campaign, President Trump advocated for a complete ban on Chinese nationals purchasing American farmland. Several states have already implemented or are considering legislation to restrict foreign ownership of agricultural land, particularly by entities associated with nations deemed potential security threats.

China’s Response and Potential Consequences

China has forcefully rejected the Missouri judgment. Chinese embassy spokesman Liu Pengyu stated that “the so-called lawsuit has no basis in fact, law or international precedent.” The Chinese government has threatened unspecified “countermeasures” if Missouri proceeds with asset seizures, potentially setting the stage for diplomatic tensions and economic retaliation. The confrontation represents a significant escalation in U.S.-China relations amid already strained ties over trade, technology transfer, and geopolitical competition.

“During the early months of the pandemic, Missouri spent millions more on PPE than it otherwise would have because of Defendants’ hoarding,” Limbaugh wrote.

The Missouri case could inspire similar actions by other states seeking compensation for pandemic-related damages. It also highlights America’s dependence on China for critical medical supplies and agricultural production, issues that gained prominence during the pandemic crisis. The judgment and resulting farmland seizures represent a tangible consequence for China’s alleged misconduct and signal a new willingness by American authorities to pursue financial remedies against foreign powers for actions that harm U.S. interests, even when those powers refuse to recognize American court jurisdiction.

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