China’s largest memory chipmaker, ChangXin Memory Technologies (CXMT), has sued the Pentagon. According to a report by the news agency Reuters, the move comes after the company was placed on a list of companies the US government says support China’s military. CXMT has also recently drawn attention after Apple reportedly made a special request to US officials regarding its status. The Cupertino-based tech giant has also reportedly held early talks with CXMT for iPhones and MacBooks which will be sold within the Chinese market. The lawsuit, filed this week, marks the latest escalation between Beijing’s tech sector and Washington over trade restrictions tied to national security concerns.“CXMT is not affiliated with the Chinese military,” the company said in its federal lawsuit. “CXMT designs, produces, and sells its DRAM chips for civilian and commercial use, not for military use.” The US Defense Department declined to comment on the specifics of the case. “As a matter of policy, the Department does not comment on pending or ongoing litigation,” the agency told Reuters.
Why CXMT was placed on the Pentagon’s list
The Pentagon first designated CXMT a Chinese military company under the Biden administration. The Trump administration kept the company on the list during a June update, despite CXMT’s efforts to have the designation lifted.Even the list itself can have dire repercussions. Companies placed on it can be barred from doing business with the US government and suffer reputational damage that can affect business relationships even outside the government arena.CXMT said the designation has already cost it. “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 the lawsuit is meant to protect its business interests going forward.
CXMT’s role in the global chip market
CXMT is China’s top producer of dynamic random-access memory chips, or DRAM, a type of memory chip used widely in smartphones, personal computers, servers, and artificial intelligence systems. The company’s revenue jumped 874% in the first half of the year, according to the Reuters report, and it has expressed hopes of eventually entering the US market.
Inside the lawsuit
CXMT filed its complaint in the US District Court for the District of Columbia. The lawsuit names the 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.The company said the Pentagon’s decision to designate it was “arbitrary,” not based on enough evidence, and violated its due-process rights. According to the complaint, CXMT provided information to the Pentagon for over a year to dispute the designation and get itself off the list.CXMT also pointed to a reversal earlier this year as evidence of inconsistent handling. The company said the Pentagon published a notice in February stating that CXMT would be removed from the list, then withdrew that notice the same day. CXMT alleges the Defense Department later relisted the company without adequately explaining the change.“None of these determinations is supported by the factual record, by applicable law, or by reasoned decision-making,” CXMT said in its complaint.
A pattern among Chinese companies
CXMT’s legal challenge follows a similar path taken by other major Chinese firms contesting their inclusion on the Pentagon’s list. In June, Chinese technology and e-commerce giant Alibaba sued the US government over its own placement on the list.Precedent suggests such challenges can succeed. Smartphone and electric-vehicle maker Xiaomi filed a similar lawsuit in 2021 and was ultimately removed from the list.CXMT’s case adds to a growing pattern of Chinese companies turning to US courts to contest national security-related designations, underscoring the tension between Washington’s efforts to restrict China’s access to advanced technology and Chinese firms’ push to protect their standing in global markets, including their long-term ambitions in the US