China's top memory chipmaker ChangXin Memory Technologies (CXMT) filed a federal lawsuit on Friday against the Pentagon, challenging its designation as a Chinese military company. According to reports from Reuters, the company argues that 'CXMT is not affiliated with the Chinese military' and that it 'designs, produces, and sells its DRAM chips for civilian and commercial use, not for military use'. The lawsuit, filed in the US District Court for the District of Columbia, names the Department of Defense, Defense Secretary Pete Hegseth, Deputy Defense Secretary Steve Feinberg and Assistant Secretary of Defense for Industrial Base Policy Michael Cadenazzi as defendants. As reported by Reuters, the company stated it is 'pursuing the action to protect its business interests' and hopes to enter the US market in the long term. The US Defense Department told Reuters in a statement: 'As a matter of policy, the Department does not comment on pending or ongoing litigation.'
The Pentagon designated CXMT a Chinese military company under the Biden administration, with the Trump administration maintaining the company on the list in a June update. According to Reuters, 'Since its initial designation in January 2025, CXMT has continuously suffered reputational and commercial harm'. The company's revenue spiked 874% in the first half of the year, and CXMT's lawsuit seeks to overturn the designation and remove itself from a Pentagon list that can trigger government contracting restrictions and reputational damage. The designation restricts business with US military agencies and contractors, as CXMT was reinstated on the 1260H list after being removed from the list. The company's lawsuit seeks to overturn the designation and remove itself from a Pentagon list that can trigger government contracting restrictions and reputational damage.
According to the complaint filed by CXMT, the company spent more than a year providing the Pentagon with information to challenge the designation, seeking removal from the list. As reported by Reuters, 'The Pentagon published a notice in February stating that the company would be removed from the list but withdrew the notice the same day'. The company alleged that the Defense Department subsequently did not adequately explain the change when it relisted it. CXMT argues that the Pentagon's decision was 'arbitrary,' lacked evidentiary support and violated its due-process rights', stating that 'None of these determinations is supported by the factual record, by applicable law, or by reasoned decision-making'. The Pentagon declined to comment on the pending litigation, stating 'As a matter of policy, the Department does not comment on pending or ongoing litigation.'
CXMT is China's top maker of dynamic random-access memory chips, which are widely used in smartphones, personal computers, servers, artificial intelligence systems and other electronics. According to Reuters, CXMT's lawsuit mirrors that of other Chinese companies, with Alibaba suing the US government over being placed on the list in June. Smartphone and electric-vehicle maker Xiaomi successfully got itself removed in 2021 by filing a suit in a US court. The company's lawsuit seeks to overturn the designation and remove itself from a Pentagon list that can trigger government contracting restrictions and reputational damage. CXMT is one of China's leading DRAM manufacturers and its case adds to a growing judicial offensive by Chinese technology companies.
