Chipmaker CXMT sues Pentagon over 'Chinese military company' designation

Its lawsuit, filed in the U.S. District Court for the District of Columbia, names the Department of Defense, Defense Secretary Pete Hegseth, Deputy Defense Secretary Steve Feinberg and Assistant Secretary of Defense for Industrial Base Policy Michael Cadenazzi as defendants.

CXMT argues that the Pentagon's decision was "arbitrary," lacked evidentiary support and violated its due-process rights.

According to the complaint, the company spent more than a year providing the Pentagon with information to challenge the designation, seeking removal from the list.

CXMT said the Pentagon published a notice in February stating that the company would be removed from the list but withdrew the notice the same day. The company alleged that the Defense Department subsequently did not adequately explain the change when it relisted it.