China's largest DRAM manufacturer, ChangXin Memory Technologies (CXMT), has filed a lawsuit against the Pentagon in the U.S. District Court for the District of Columbia, challenging its placement on the Section 1260H list of companies linked to the Chinese military. The suit names Defense Secretary Pete Hegseth as a defendant and argues the designation was arbitrary, lacked evidentiary support, and violated due-process rights. CXMT was first added to the list in January 2025 under the Biden administration, and the designation was retained in a June update by the Trump administration.

CXMT's central argument relies on JEDEC compliance, asserting its DRAM chips are built to standard commercial specifications—covering temperature tolerance, packaging, and testing—rather than military-grade requirements. In February, the Pentagon reportedly issued a notice indicating CXMT would be removed from the list but withdrew it the same day without explanation. CXMT states it spent over a year providing the Department of Defense with information to support its removal, without success.

While the label primarily restricts direct Pentagon contracts—which CXMT says it barely pursues—the company claims the greater harm has been reputational, as many firms avoid entities tied to a "Chinese military" designation. Despite this, CXMT DRAM has reached Western PC makers amid ongoing supply shortages, and Apple has separately sought U.S. approval to use CXMT chips in its products.