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.

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