Apple Inc. suffered another legal setback in China where officials in Beijing slapped the company with a patent violation on some iPhone models, ruling in favor of a local rival.

Apple was quick to downplay the ruling, saying an appeal had already been lodged, allowing the phones to stay on the market in the Chinese capital pending the outcome.

Still, the decision is another sign that Chinese officials are scrutinizing the company more closely and comes as Apple, already grappling with slowing iPhone sales, prepares to roll out the next version of its iconic smartphone. China shut down Apple’s book and movie service in April for violating foreign publishing regulations, and last month a Beijing court ruled that a little-known accessories maker could use the iPhone label for a range of wallets and purses. Billionaire Carl Icahn said in April he sold out of his position in Apple because of concerns about the company’s relationship with China.

In the face of obstacles, Apple has made efforts to remain on good terms with the Chinese government, including a visit by CEO Tim Cook where he announced a $1 billion investment in China’s car-sharing service Didi Chuxing Technology.