The foreign secretary said he would "consider" action against China for its "serious and egregious human rights violations" against Uighur Muslims.
And he did not rule out asking Prince William, often sent on behalf of the government to attend international sporting events, not to go to the Games - due to be held in 2022.
China has been accused of oppressing and breaching the human rights of the Uighur people in Xinjiang province.
There have been widespread reports of Uighurs being held against their will in "re-education" centers, undergoing forced contraception, and being subjected to a range of other restrictions.
China says the claims are "baseless" and have repeatedly denied being responsible for any mistreatment, saying the Uighurs live in "peace and harmony".
But Mr. Raab said on Tuesday there was "evidence of serious and egregious human rights violations" against the minority group.