Zhejiang Yunguang Printing. Photo: Yang Hui/GT

A Chinese company that has been accused of using forced prison labor on Tuesday took an open attitude toward reported investigations by several foreign partners and denied the claims in foreign media reports.

Speaking of the latest media report of a probe by Australian clothing retailer Cotton On Group, Zhejiang Yunguang Printing Co said that it has an Australian partner known as Cotton On but said it was unaware of the reported investigation.

"We know that Disney will launch an investigation into our factory. But this is normal. Just let them investigate us. It doesn't matter because we have never done any such thing," Lu Yunbiao, general manager of the company, told the Global Times on Tuesday night, referring to the accusations that it has used forced labor by prisoners in Qingpu district, Shanghai.

Lu said that foreign clients usually launch random inspections into the company over issues such as employees' rights, environment and safety each year.

While some media outlets have reported that Cotton On was probing Zhejiang Yunguang, it was the first time that the Chinese company had disclosed the probe by Disney. 

Lu said that his company supplies picture albums for Disney.

The saga surrounding the otherwise little-known Chinese firm started after a report that a consumer in the UK received a Christmas card sold by UK retailer Tesco and made by Zhejiang Yunguang that contained a message alleging the use of forced labor by a foreign prisoner at the factory. That report prompted Tesco to suspend its ties with the Chinese firm.

Zhejiang Yunguang has vehemently denied the claims, saying it has no link with any prison, and threatened legal action over the media report, which was initially written by Peter Humphrey, who has served jail time in China. 

The Chinese Foreign Ministry on Monday denied the existence of forced labor by foreign prisoners at the prison in question in Shanghai, billing the saga as a "drama choreographed by" Humphrey.

Lu said that Tesco told him on Monday that the UK company was still waiting for the result of an investigation and was working through the holidays over the issue. 

"Tesco is also anxious because it feels that our company has done well and that both unannounced and normal inspections did not reveal any problems. They even wrote a report to us," he said, adding the company receives orders of more than 10 million yuan ($1.43 million) from Tesco annually.