Beijing said it is investigating PVH, the owner of Calvin Klein and Tommy Hilfiger, setting up a potential block on the American apparel firm’s sales in China just as the U.S. introduces measures to limit Chinese access to its own market.

Beijing says it suspects US brands are discriminating against Chinese cotton after allegations of forced labour.

In 2021, multiple Western countries imposed sanctions on China after concern was raised over human right abuses of minority groups in Xinjiang.

Investigation could lead to first use of security measure against foreign company with significant Chinese interests

China said it will investigate US apparel maker PVH Corp. for suspected boycotting of cotton sourced from its Xinjiang region, a probe that could lead to punishment for the parent company of Tommy Hilfiger and Calvin Klein.