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.

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

The Commerce Ministry says PVH Group violated the principles of normal market transactions by prohibiting sourcing from the Chinese region, where there have been allegations of forced labor.