Starbucks faces US criticism over new stores in Xinjiang

Starbucks has opened its first two stores in the Xinjiang region of China, located in Urumqi at the International Grand Bazaar and Tianshan International Airport. The expansion is part of a broader strategy to deepen market presence in China, which serves as the company’s second-largest market.

The move has drawn sharp criticism from US lawmakers. John Moolenaar, chairman of the US House Select Committee on China, called on the company to close the new locations, describing the decision as “morally bankrupt” due to allegations of human rights abuses against Uyghurs and other Muslim minorities in the region.

This expansion follows a recent restructuring in China, where Starbucks entered a retail joint venture with Boyu Capital in April. Under this arrangement, Boyu Capital holds a 60 per cent stake while Starbucks retains 40 per cent and maintains ownership of its brand and intellectual property. While China rejects allegations of abuses in Xinjiang, the political tension has placed pressure on the company’s brand and stock performance.