Hong Kong apparel giant Esquel Group said it is suing the U.S. government for what it called the “erroneous” blacklisting of a subsidiary, saying it had been “falsely implicated” in the use of forced labor in China’s Xinjiang region.
The unit, Changji Esquel Textile Co. Ltd., was added to the U.S. Commerce Department’s Entity List during former President Donald Trump’s administration. That designation prohibits American firms from doing business with listed companies without first obtaining a government license.