Chinese Chipmaker CXMT Sues Pentagon Over Military Company Designation

ChangXin Memory Technologies, China’s largest maker of memory chips, has filed a federal lawsuit against the US Department of Defense challenging its inclusion on a list identifying companies allegedly linked to China’s military.

Company Denies Military Ties

In its lawsuit, CXMT stated that it has no affiliation with the Chinese military and that its memory chips are designed and sold strictly for civilian and commercial purposes. The company argues that its placement on the Pentagon’s list was arbitrary, lacked sufficient evidence, and violated its right to due process.

Designation Carries Business Consequences

The Pentagon originally added CXMT to the list under the previous administration, and the designation was maintained in a more recent update. Companies placed on the list can face restrictions on US government contracting opportunities, along with broader reputational and commercial setbacks. CXMT said it has experienced ongoing harm to its business since being listed and is pursuing legal action to protect its commercial interests.

Company Says It Sought Removal For Over A Year

According to the lawsuit, CXMT spent more than a year submitting information to the Defense Department in an effort to be removed from the list. The company claims officials briefly announced plans to remove it earlier this year before reversing that decision the same day, without providing a clear explanation for the reversal.

Case Joins Broader Pattern Among Chinese Firms

CXMT’s lawsuit follows similar legal action taken by other major Chinese companies contesting their inclusion on the same list, reflecting a growing trend of firms pushing back against the designation through US courts. Some companies challenging the designation in the past have successfully secured removal through litigation.