Chinese memory-chip maker YMTC sues U.S. government over “military company” designation
GeokHub
Contributing Writer
WASHINGTON — Dec 8 (GeokHub) YMTC, China’s leading flash-memory chipmaker, has filed a lawsuit in a U.S. federal court challenging United States Department of Defense’s decision to label it a “military-linked” company. The company argues that the listing is based on inaccurate or outdated information and is seeking a court order to annul the designation.
In its complaint, YMTC states that it produces only commercial-grade flash memory — used in devices such as laptops and smartphones — and has never supplied products for military use or had any ties to China’s armed forces. The firm says the designation has caused substantial financial and reputational harm, including lost business with U.S. customers and partners.
Alongside the lawsuit against the Defense Department, YMTC has also filed separate legal action against the United States Department of Commerce, challenging its inclusion on the agency’s restricted-export list. The company says it remains in full compliance with U.S. export regulations and that no violations have ever been alleged.
With this move, YMTC joins other Chinese firms that have attempted to use the U.S. legal system to contest export-control designations — a path that has seen mixed results in recent years. The outcome of the case could influence how other companies respond to similar blacklisting decisions in the future.
