Apple has been told to suspend sales of two versions of the iPhone 6 in Beijing because they are too similar to a competitor.
The order by an intellectual property tribunal said the iPhone 6 and 6 Plus infringed a design patent for the 100C model made by Shenzhen Beili, a small Chinese brand.
It was issued in May but reported this week by Chinese media.
Apple said it had been allowed to continue selling the devices for now after a Beijing court stayed the administrative order on appeal.
Shares in Apple fell 2.3% after the news emerged, contributing to a fall on the S&P 500 of 0.3% and a 0.9% drop for the Nasdaq.
It is the latest setback for Apple in its second biggest market after regulators forced it to suspend the iBooks and iTunes Movies services in April.
Then in May, a court ruled a Chinese company would be allowed to use the iPhone trademark on bags, wallets and other leather goods.