The local gene-sequencing company and a U.S. clothing company face sales restrictions in China as part of that country’s economic retaliation.

Illumina, the San Diego-based gene sequencing giant, is taking a hit this week after China placed the company on its "unreliable entity" list. Why it matters: Companies placed on China's blacklist, which this week also included the parent company of Calvin Klein and Tommy Hilfiger,

Analysts said the move comes amid rising trade tensions with the U.S. and as Illumina faces stiff competition in China’s genome sequencing market.

Tommy Hilfiger and Calvin Klein owner PVH (PVH) and biotechnology company Illumina (ILMN) were among the first casualties on the American side

China's Commerce Ministry said on Tuesday that it had put PVH Corp and Illumina on its unreliable entity list after the two companies took what it called "discriminatory measures against Chinese enterprises" and "damaged" legitimate rights and interests of Chinese companies.