Key facts
- China's top memory chipmaker, ChangXin Memory Technologies (CXMT), is suing the U.S. Pentagon.
- CXMT denies being affiliated with the Chinese military and states its products are for civilian use.
- The company alleges the Pentagon's designation has caused reputational and commercial harm.
- CXMT seeks to overturn the designation and be removed from a Pentagon list.
- The lawsuit claims the Pentagon's decision lacked evidentiary support and violated due process rights.
China's leading memory chip manufacturer, ChangXin Memory Technologies (CXMT), has filed a lawsuit against the U.S. Department of Defense, challenging its designation as a company that aids Beijing's military.
In the lawsuit filed in the U.S. District Court for the District of Columbia, CXMT asserts that it is not affiliated with the Chinese military and that its dynamic random-access memory (DRAM) chips are designed, produced, and sold exclusively for civilian and commercial applications. The company is seeking to overturn the designation and be removed from a Pentagon list that can lead to government contracting restrictions and significant reputational damage.
CXMT stated that it has suffered continuous reputational and commercial harm since its initial designation in January 2025 and is pursuing legal action to protect its business interests. The company argues that the Pentagon's decision was arbitrary, lacked sufficient evidentiary support, and violated its due process rights. According to the complaint, CXMT provided the Pentagon with information for over a year to contest the designation.
The lawsuit also alleges that the Defense Department published a notice in February indicating CXMT would be removed from the list, only to withdraw it the same day without adequate explanation. CXMT contends that these determinations are not supported by the factual record, applicable law, or reasoned decision-making.
This legal challenge by CXMT mirrors actions taken by other Chinese companies. In June, e-commerce giant Alibaba also sued the U.S. government over a similar designation. Smartphone and electric-vehicle maker Xiaomi successfully had itself removed from the list in 2021 after filing a lawsuit in a U.S. court.