Chinese memory chipmaker CXMT sues Pentagon over ‘Chinese military company’ designation
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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.
PHOTO: BLOOMBERG
- ChangXin Memory Technologies (CXMT), China’s top memory chipmaker, sued the Pentagon over its designation as a "Chinese military company," seeking removal from the US Defence Department’s list.
- CXMT claims it only produces civilian DRAM chips and argues the Pentagon’s decision is "arbitrary," unsupported by facts, and violates its due-process rights.
- The lawsuit highlights ongoing tensions as other Chinese firms like Alibaba have also challenged similar US military-related designations, affecting reputations and business opportunities.
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China’s top memory chipmaker, ChangXin Memory Technologies (CXMT), sued the Pentagon on Aug 28 over being placed on a list of companies the United States believes are aiding Beijing’s military.
“CXMT is not affiliated with the Chinese military,” the company said in the federal lawsuit. “CXMT designs, produces, and sells its DRAM chips for civilian and commercial use, not for military use.”
The US Defence 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, and the Trump administration kept the company on the list in a June update.
CXMT’s lawsuit seeks to overturn the designation and remove itself from a Pentagon list that can trigger government contracting restrictions and reputational damage.
“Since its initial designation in January 2025, CXMT has continuously suffered reputational and commercial harm,” the company said in a statement to Reuters, adding that it is pursuing the action to protect its business interests.
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.
The company, whose revenue spiked 874 per cent in the first half, hopes to enter the US market in the long term, Reuters has reported.
The lawsuit, filed in the US District Court for the District of Columbia, names the US Department of Defence, Defence Secretary Pete Hegseth, Deputy Defence Secretary Steve Feinberg and Assistant Secretary of Defence for Industrial Base Policy Michael Cadenazzi as defendants.
CXMT argues that the Pentagon’s decision was “arbitrary”, lacked evidentiary support and violated its due-process rights.
According to the complaint, the Defence Department first designated CXMT as a Chinese military company in January 2025. The company said it spent more than a year providing information to challenge the designation and seeking removal from the list.
CXMT said the Pentagon published a notice in February 2026 stating that the company would be removed from the list, but withdrew the notice later the same day. The company alleged that the Defence Department subsequently relisted it in June without adequately explaining the change in position.
“None of these determinations is supported by the factual record, by applicable law, or by reasoned decision-making,” CXMT said.
CXMT’s lawsuit mirrors that of other Chinese companies.
In June, Alibaba, the Chinese technology and e-commerce giant, sued the US government over being placed on a list of businesses from China that the Department of Defence linked to that country’s military.
Smartphone and electric-vehicle maker Xiaomi got itself removed in 2021 by filing a suit in a US court. REUTERS
