CXMT Sues Pentagon Over Chinese Military Company Label

The CXMT Pentagon lawsuit challenges the company’s inclusion on the US Covered List of alleged Chinese military companies.
Chinese memory-chip maker ChangXin Memory Technologies, or CXMT, has sued the Pentagon over its designation as a “Chinese military company.”

CXMT says the label is false and lacks a legal or factual basis. The company argues that it designs, makes and sells DRAM memory chips for civilian and commercial use rather than military purposes.

CXMT challenges its place on the Covered List

The Pentagon added CXMT to its Covered List in January 2025. The designation alleged direct links to China’s Ministry of Industry and Information Technology and indirect links to the State-Owned Assets Supervision and Administration Commission.

CXMT spent more than a year providing information and seeking removal from the list. However, the Trump administration retained the company on the updated Covered List in June 2026.

The company then filed its CXMT Pentagon lawsuit in the US District Court for the District of Columbia.

CXMT said none of the government’s conclusions were supported by the factual record, relevant law or a reasoned decision-making process.

Company makes DRAM chips for consumer and business devices

CXMT is China’s largest manufacturer of dynamic random-access memory, or DRAM, chips. These components are used in smartphones, personal computers, servers and artificial intelligence systems.

The company stressed that it does not produce chips for military use and has no affiliation with the Chinese military.

A Pentagon spokesperson said the Department of War does not comment on pending litigation.

Covered List targets alleged military links

The Covered List has operated since 2021 and identifies Chinese companies that US officials believe have close links to China’s military or government.

The Pentagon has added several prominent Chinese technology companies to the list in recent months, including Alibaba, Baidu and BYD.

China’s embassy criticised the move, accusing the US of expanding the definition of national security and using discriminatory lists to target Chinese businesses. It called on the US to provide a fair and non-discriminatory environment for Chinese companies.

The case now puts CXMT’s corporate status and the government’s basis for its designation before a federal court.