Patriotic blogger Wu Wanzheng, who goes by "Truth-Telling Mao Xinghuo" online, filed a claim against the novelist last month under a 2018 law that made insulting heroes and martyrs a crime.
Mr Wu claims that Mr Mo's books smeared the ruling Communist Party's reputation, "beautified" enemy Japanese soldiers and insulted former revolutionary leader Mao Zedong.
Mr Wu's suit demands that the author apologise to all Chinese people, the country’s martyrs and Mao, and pay damages of 1.5 billion yuan ($316 million) – 1 yuan for each Chinese person.
He also requested that Mr Mo's books be removed from circulation.
Mr Mo, whose real name is Guan Moye, won the Nobel in 2012.
Patriotic campaigns have become more common in recent years in China, as online nationalists attack journalists, writers and other public figures they say have offended the country's dignity.