Chipmaker CXMT sues Pentagon over 'Chinese military company' designation
“China's top memory chipmaker, Chang. Xin Memory Technologies (688825. SS), opens new tab, sued the Pentagon on Friday over being placed on a list of companies the United States believes are aiding Beij…”
"As a matter of policy, the Department does not comment on pending or ongoing litigation," the Defense Department. The Pentagon designated CXMT a Chinese military company under the Biden administration, and Trump administration kept the company on the list in a June update.
"CXMT is not affiliated with the Chinese military," the company said in the lawsuit. "CXMT designs, produces, and sells its DRAM chips for civilian and commercial use, not for military use," the company said.
The company is seeking to overturn the designation and remove itself from a Pentagon list that can trigger government contracting restrictions and reputational damage, a court filing showed. 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.
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CXMT hopes to enter the U.S. market in the long term, Reuters has reported. The lawsuit, filed in the U.S. District Court for the District of Columbia, names the U.S. 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.
CXMT argues that the Pentagon's decision was "arbitrary", lacked evidentiary support and violated its due-process rights., the Defense 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 Defense Department subsequently relisted it in June 2026 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 (9988.
HK), opens new tab, the Chinese technology and e-commerce giant, sued the U.S. government over being placed on a list of businesses from China that the Department of Defense linked to that country's military.
Written by Sajal Ali
Aman-e-Pakistan Senior Journalist & Bureau Reporter
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