In a shocking turn of events, China’s largest memory chipmaker ChangXin Memory Technologies (CXMT) has sued the Pentagon. As per the report published by Reuters, the move comes after the firm was placed on a list of firms the US government says support the Chinese military. CXMT has also garnered a lot of attention after Apple reportedly made a special request to US officials regarding its status.
Apple has also reportedly held early talks with CXMT for iPhones and MacBooks which will be sold within the Chinese market. Furthermore, the lawsuit filed this week marks the latest escalation between Beijing’s tech sector and Washington over trade restrictions tied to national security concerns.
The agency told Reuters, “CXMT is not affiliated with the Chinese military. CXMT designs, produces, and sells its DRAM chips for civilian and commercial use, not for military use. As a matter of policy, the Department does not comment on pending or ongoing litigation.”
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.
Now, the companies placed on the list 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 has also said that the designation has already cost it. The company also said, “Since its initial designation in January 2025, CXMT has continuously suffered reputational and commercial harm.”
As for the case, CXMT filed its complaint in the United States 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 firm said that the Pentagon’s decision to designate it was “arbitrary,” not based on enough evidence, and violated its due-process rights.
