Is Trump Gonna Make China Pay For Our Covid Loans?

Published on: May 2, 2025
| By Patrick Zarrelli
in Business, China, Donald Trump, Health, News, Politics

Trump Pushes to Make China Pay U.S. COVID Loans: A Political and Ethical Campaign Flashpoint

Former President Donald Trump is intensifying his campaign to hold China financially responsible for the COVID-19 pandemic—this time by demanding that Beijing repay the United States for loans and business losses incurred during the crisis. With new messaging across official government websites and a sharp uptick in lab-leak rhetoric, Trump is building a policy argument centered on accountability, economic fairness, and campaign advantage.

Lab-Leak Narrative Becomes Official Messaging

In recent weeks, the Trump administration has revamped public-facing pandemic resources to reflect a more accusatory stance toward China. Notably, the COVID.gov website now highlights “The True Origins of COVID-19,” displaying images of Trump flanked by the words “Lab” and “Leak.”

This digital shift is more than branding—it underscores a long-standing claim that COVID-19 originated from a laboratory in Wuhan, China. “It came in from China,” Trump reiterated at a recent rally. “That was an easy one—Wuhan.” These updates are designed to lend credibility to the lab-leak theory, despite ongoing debate within the scientific community.

The Argument: If It’s China’s Fault, They Should Pay

Trump’s policy argument is clear: If the virus originated in a Chinese lab due to government negligence or malfeasance, then China—not American taxpayers or businesses—should bear the financial consequences.

In 2021, Trump demanded $10 trillion in COVID reparations from China. At the time, he even proposed that countries cancel Chinese debts as a symbolic “down payment.” “We demand reparations from the Communist Party of China. China must pay,” he said.

That message has now evolved to include COVID-era loans distributed to American businesses—many of which are still repaying them. Trump argues that if China caused the pandemic, they should be responsible for reimbursing U.S. firms for the debt they incurred trying to survive it.

Chinese Firms Benefited from U.S. Aid

Data shows that approximately 125 Chinese-owned companies received between $192 million and $419 million in Paycheck Protection Program (PPP) loans from the U.S. government during the pandemic. In some cases, these loans were later forgiven, meaning American taxpayers footed the bill.

One company, YAPP USA—an auto parts maker owned by a Chinese state-backed entity—received nearly $10 million in PPP loans. It was later ordered to repay $14.2 million after it was found ineligible. Critics say these cases reveal structural flaws in relief oversight, arguing that U.S. dollars effectively supported foreign competitors.

“This is not just about money,” said one campaign advisor. “It’s about righting a wrong and making sure U.S. interests are put first.”

Political Win-Win: Trump Aligns With Business, Public Anger

The proposal could also be a political winner. Over half of Americans—and 71% of Republicans—have previously supported the idea of China paying COVID reparations, according to public polling. Trump is tapping into that frustration while appealing to U.S. corporations still suffering from pandemic-era losses.

Many American companies have long been frustrated by Chinese trade practices, intellectual property theft, and state subsidies. Trump’s message to them is simple: He’ll fight to get your money back.

Ethical Case: Holding China Accountable

Beyond politics, Trump’s plan has an ethical dimension. Scholars argue that forcing China to repay pandemic-related losses would act as a deterrent against future misconduct. It would also send a global message: nations that act recklessly and cause harm must be held financially accountable.

A report from the Hoover Institution urged the U.S. and its allies to “make China pay” to discourage future public health and safety violations. Trump’s proposal is aligned with this thinking, pushing for concrete financial consequences to replace symbolic outrage.