I got an issue

I consulted the expertise of an agent to get me a visa to china for business, he used his own company and affixed me with another person. we both went for an interview and was advised to come the next week for collection. I was surprised when i heard the other guy was invited and also heard we were both issued the entry permits but for one reason both were later cancelled. what i could figure out is the guy had issues with china during his previous visit 2 years ago. I mean how does this concern me? why should it affect my application? Im forced to get a new passport now but before that I am discussing with my lawyer to sue the embassy. I understand if a visa is denied for a genuine reason, but not condemning my passport for no reason or because of a crime committed by someone i dont know. Pls advise!