China’s CXMT sues Pentagon over military-linked company designation

  • CXMT sued the Pentagon seeking reversal of its military-linked company designation.
  • Revenue surged 874% in the first half of 2026 amid strong AI-memory demand.
  • The Pentagon listed CXMT in January 2025 and retained it in a June update.

ChangXin Memory Technologies, China’s top DRAM producer, sued the Pentagon in the U.S. District Court for the District of Columbia, seeking to overturn its designation on a U.S. list of companies accused of aiding China’s military. CXMT says it is not affiliated with the Chinese military and that its DRAM chips are designed, produced and sold for civilian and commercial use. The Pentagon added CXMT under the Joe Biden administration in January 2025, while the Donald Trump administration retained it in a June update. CXMT alleges the decision was arbitrary, lacked sufficient evidence and violated its due-process rights after the company spent more than a year providing information to challenge the designation. It also says the Defense Department published and withdrew a removal notice on the same day in February. CXMT says the listing has caused reputational and commercial harm. The Defense Department declined to comment on pending or ongoing litigation, and did not immediately respond to Benzinga’s request for comment. CXMT’s revenue surged 874% in the first half of 2026 as demand for memory used in artificial-intelligence systems expanded. The case follows Alibaba Group Holding Ltd.’s similar challenge, while Xiaomi Corp. successfully contested its designation in 2021 and was eventually removed from the list.

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China’s CXMT sues Pentagon over military-linked company designation - CoinPost Terminal