ChangXin Memory Technologies sued the Pentagon to challenge its Section 1260H designation.
Why it matters: The Pentagon label can affect federal contracting and procurement decisions, while also shaping how U.S. buyers and partners view the company. CXMT is asking a court to remove a designation that has kept it under U.S. national-security scrutiny.
- Reuters reported that CXMT sued the Pentagon on Friday, Aug. 28, 2026.
- CXMT is challenging its inclusion on the Defense Department's Section 1260H list of Chinese military companies.
- The Pentagon's June 8, 2026 update said CXMT is directly affiliated with China's Ministry of Industry and Information Technology and indirectly affiliated with SASAC and MIIT.
- CXMT said the designation has caused reputational and commercial harm since its initial listing in January 2025.
ChangXin Memory Technologies, or CXMT, is taking on the U.S. Defense Department over a designation that has put the Chinese DRAM maker under national-security scrutiny. Reuters reported that CXMT sued the Pentagon on Friday, seeking removal from the Section 1260H list of Chinese military companies.
CXMT said in its filing that it is not affiliated with the Chinese military, and told Reuters that since its initial designation in January 2025 it has suffered reputational and commercial harm. The Pentagon's June 8, 2026 list update kept CXMT on the roster and said the company is directly affiliated with China's Ministry of Industry and Information Technology, and indirectly affiliated with the State-owned Assets Supervision and Administration Commission and MIIT, according to the Defense Department PDF.
Section 1260H of the FY2021 NDAA requires the Pentagon to publicly identify entities it determines are Chinese military companies operating directly or indirectly in the United States. The designation is separate from the Commerce Department's Entity List, but it can still affect U.S. government contracting and related procurement activity, according to the Defense Department's 1260H overview.
Reuters also reported that the Pentagon had published a February 2026 notice saying CXMT would be removed from the list, then withdrew that notice the same day. The June 2026 update kept CXMT on the list.
By the numbers
- Jan. 2025 - CXMT's initial designation date, according to the company and Pentagon materials.
- June 8, 2026 - the Pentagon's latest public update keeping CXMT on the Section 1260H list.
- Aug. 28, 2026 - the date Reuters reported CXMT filed suit.