CXMT Takes Pentagon to Court Over Chinese Military Label
ChangXin Memory Technologies, China’s leading memory chip manufacturer, initiated legal action against the Pentagon on Friday, contesting its inclusion on a list of firms that the United States claims are supporting Beijing’s military efforts. “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 conveyed in a statement: “As a matter of policy, the Department does not comment on pending or ongoing litigation.” The Pentagon classified CXMT as a Chinese military entity during the Biden administration, while the Trump administration maintained the company’s status on the list in a June update.
CXMT’s lawsuit aims to reverse the designation and extricate itself from a Pentagon list that may lead to government contracting limitations and reputational harm. “Since its initial designation in January 2025, CXMT has continuously suffered reputational and commercial harm,” the company said in a statement, adding that it is pursuing the action to protect its business interests. CXMT stands as China’s leading manufacturer of dynamic random-access memory chips, which find extensive application in smartphones, personal computers, servers, artificial intelligence systems, and various other electronic devices. The company, whose revenue spiked 874% in the first half, aims to penetrate the US market in the long term, according to reports.
The lawsuit, filed in the US District Court for the District of Columbia, names the 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 contends that the Pentagon’s decision was “arbitrary,” devoid of evidentiary backing, and infringed upon its due-process rights. According to the complaint, the company dedicated over a year to supplying the Pentagon with information aimed at contesting the designation, pursuing its removal from the list. CXMT stated that the Pentagon issued a notice in February indicating that the company would be removed from the list, but retracted the notice on the same day.
The company asserted that the Defence Department failed to provide sufficient clarification regarding the change when it relisted it. “None of these determinations is supported by the factual record, by applicable law, or by reasoned decision-making,” CXMT said. CXMT’s lawsuit reflects a pattern observed among other Chinese companies. In June, Alibaba, the prominent Chinese technology and e-commerce firm, initiated legal action against the US government regarding its inclusion on the list. Smartphone and electric-vehicle manufacturer Xiaomi successfully extricated itself in 2021 by initiating legal proceedings in a US court.
