YMTC filed a lawsuit on December 5, 2025, in the US District Court in Washington, challenging the US Department of Defense's decision to label it as linked to the Chinese military, asking the court to block enforcement of the listing and overturn the designation.
Reuters reported that the Pentagon placed YMTC on its list of Chinese military companies operating in the US in January 2024 and reaffirmed the designation in early 2025.
YMTC said in the filing that it has no links to the People's Liberation Army or any Chinese defense authorities.
The company argued that the Pentagon relied on outdated and inaccurate information to claim YMTC had ties to China's Ministry of Industry and Information Technology, adding that the designation has caused sustained financial and reputational damage, including the loss of business with US partners.
YMTC said its products are commercial-grade, not built to military specifications, and have never been provided to the military.
YMTC also sued the US Department of Commerce on December 5, 2025, over its decision to place the company on a list restricting access to US technology. The firm said it maintains a comprehensive export-compliance program and noted that the Department of Commerce has never accused it of violating US export-control laws.
Bloomberg earlier reported that YMTC has been exploring a China IPO with a potential valuation above US$40 billion, positioning it as one of the country's largest prospective listings in recent years.
Article edited by Jerry Chen
