ChangXin Memory Technologies, known as CXMT, has sued the US Department of Defense over its inclusion on the Pentagon’s Section 1260H list of Chinese military-affiliated companies. The designation does not prohibit private-sector transactions, but it limits business between listed companies and US government agencies or their defense contractors, creating reputational and commercial pressure. CXMT was reinstated on June 8, 2026, alongside Yangtze Memory Technologies and other firms, after a brief removal in February. Its lawsuit follows similar challenges by Yangtze Memory Technologies, WuXi AppTec and Alibaba, which argue that the Pentagon violated the Administrative Procedure Act, the US law governing federal agency rulemaking. The case comes as CXMT’s business expands: its July 2026 IPO saw shares rise roughly 466% on listing, valuing the company at approximately 3.28 trillion yuan, or around $485 billion. CXMT is now the world’s fourth-largest DRAM manufacturer, has a multi-billion-yuan supply agreement with Tencent and is targeting capacity above 350,000 wafers per month by the end of 2026. The legal challenge is centered on whether the Pentagon followed proper procedures, particularly after removing and quickly reinstating CXMT.