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WASHINGTON DC - Hong Kong-based textile and apparel manufacturer the Esquel Group has suffered another setback in its bid to overturn US sanctions against one its subsidiaries over alleged links to forced labour in China's Xinjiang region.

The US Court of Appeals denied a bid by Changji Esquel Textile Company, which has a spinning mill in Xinjiang, for a preliminary injunction against its placement on the US Commerce Department's 'entity list' limiting its access to US markets and goods.

Judges Judith Rogers, Patricia Millett and Gregory Katsas said the company's case that human rights violations were not proper grounds for it to be placed on the list was "not likely to succeed".

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