(CBS13/CNN) – After McDonald’s cancelled its sponsorship of NASCAR driver Kyle Larson this week for making a racist remark, the company came under fire for racial problems of its own when one of its restaurants in China banned black people.

McDonald’s dumped its sponsorship of Larson Monday after his use of the N-word during a virtual race on Twitch over the weekend. Of the incident, the company said in a statement: “We were extremely disappointed and appalled to hear about this incident. The comments made by Kyle Larson are insensitive, offensive and not reflective of our inclusive values and will not be tolerated. McDonald’s is taking immediate action to terminate the relationship with Larson.”

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Larson was fired Tuesday by Chip Ganassi Racing.

But according to CNN, McDonald’s is now in damage control mode after one of the company’s restaurants in Guangzhou, China displayed a sign banning black people from the premises. The sign, which recently circulated on social media, said the location has “been informed that from now on black people are not allowed to enter the restaurant.”

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The sign is “not representative of our inclusive values,” McDonald’s said in a statement to CNN. The sign was then removed and the location was temporarily closed. Neither CBS13 nor CNN has been able to authenticate the video.

Guangzhou has the largest African population in China and is no stranger to racial tensions between Africans and locals. Recent warnings from Chinese officials about the rising number of imported coronavirus cases have stoked anti-foreigner sentiment. Africans in the southern Chinese industrial city have been evicted from their homes by landlords and turned away from hotels, despite many claiming to have no recent travel history or known contact with COVID-19 patients.

McDonald’s said it will use the closure to “further educate managers and employees on our values, which includes serving all members of the communities in which we operate.”

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