Beijing said it is investigating PVH Corp. in a move that may block the American clothing firm from selling its products in the Chinese market, as tit-for-tat trade curbs between the U.S. and China rachet up.

Beijing says it’s investigating fashion retailer PVH Corp, the owner of Calvin Klein and Tommy Hilfiger, for refusing to source cotton from the Xinjiang region, in a move that could lead to sanctions on an American company with major business interests in China.

China will launch an investigation into PVH, the parent company of Calvin Klein and Tommy Hilfiger, for suspected violations of market trading principles regarding Xinjiang-related products, the commerce ministry said on Tuesday.