Esquel Group, a Hong Kong-based textile and apparel manufacturer, sued the U.S. government after losing a number of high-profile customers following the placement of a subsidiary in China's Xinjiang region on the U.S. "entity list", The Wall Street Journal reported Wednesday.
In its lawsuit, the Chinese firm asked a federal judge to remove the cotton mill from the U.S. Commerce Department export blacklist of "businesses that pose a national security threat," said the report.
U.S. officials listed the mill in Changji city of Xinjiang last July, accusing it of using forced labor, which the company denies.
"The Department of Commerce provided no evidence to support its erroneous decision and acted far beyond its limited legal authority," Esquel's attorney James Tysse said Tuesday in a statement.
The listing "contradicts the facts including audits by multiple world-class, thrid-party independent auditors using internationally recognized industry standards," and causes economic and reputational harm, the company said in the statement. Enditem