Our China manufacturer intentionally provided us defect products & started selling our competitor's products on Amazon. We are in NYC. What can we do?

We're a small business located in NYC that sells pet ID tags online. We're seeking legal advice for an incident we have with our China manufacturer. We've done business with them in the past. However, the recent order of tags we received from them are defective. They offered to replace but those tags were also defective. Both times, we didn't realize the problem until later, when we started receiving customer complaints and negative reviews. As a result, these incidents caused severe damage to our sales. We also noticed they started selling one of our competitors’ pet tags on their own Amazon account, which led us to believe that this incident might not have been an accident, but an intentional sabotage of our business and brand for their interest. What kind of compensation can we claim for the damages if we file a lawsuit? What is the process since they're in China? They have an Amazon account that sells items in the US. Greatly appreciate any advice. Thank you.