Starbucks can sell China, not the China risk

STARBUCKS’ decision to revive its business in China by giving up majority control to a local partner looks increasingly like an astute way of operating when commercial pressure and political risk collide.

A US congressman called on the coffee giant in October to shutter two newly opened cafes in Urumqi, capital of the far-western autonomous region of Xinjiang, citing allegations of genocide in the controversial territory.

Having agreed to sell a 60 per cent stake in its Chinese business to private-equity firm Boyu Capital in 2025, Starbucks has reduced its exposure to such criticism, even if it cannot escape it entirely.