China’s Largest Memory Chipmaker CXM Files Lawsuit Against Pentagon For ‘Military Company’ Designation

China’s Largest Memory Chipmaker CXM Files Lawsuit Against Pentagon For ‘Military Company’ Designation

WASHINGTON, US, August 29 [VoM News]: China’s largest memory chip maker, ChangXin Memory Technologies (CXMT), sued the US Department of Defense to have it withdraw a designation of it as a Chinese military company, Reuters reported.

In a complaint filed in the US District Court for the District of Columbia, CXMT argued that it had no links to the Chinese army and that the company exclusively produced DRAM memory chips for civilian and commercial use and wants to have the designation overturned and its name removed from the list maintained by the Pentagon.

The designations generally could restrict companies from getting contracts with the US government and also harm their reputation and CXMT said it had sustained commercial and reputational harm since the initial designation in January 2025 and was seeking to challenge it to protect its business.

Reuters reported the designation against CXMT was imposed during the Biden administration in December, while the former administration on the Trump administration listed in its June list. The Defense Department, on the other hand, refrained from responding to a query about the litigation.

CXMT also alleged that the decision made by the Pentagon was arbitrary, irrational, and lacked evidence and a violation of its due-process rights. The company also said that it gave the Pentagon proof of its operations over more than a year to protest against the decision, as outlined in its lawsuit complaint.

Additionally, CXMT said the Pentagon had published a notice in February announcing its intention to delist the company but revoked the notification on the same day. CXMT stated that the Pentagon did not properly explain its decision on relisting it.

The largest producer of DRAM chips in China, CXMT’s products are used in smartphones, computers, servers, AI, and other electronic gadgets. The lawsuit filed comes just months after other Chinese companies, such as Alibaba, challenging the Pentagon designation in a US court.

(Inputs from Reuters)

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