US and China fast-food chains expand into each other's markets

Despite ongoing political tensions regarding tariffs, technology, and Taiwan, American and Chinese fast-food chains are engaging in significant mutual market expansion. This trend is being described by market observers as a form of consumer-led ‘gastrodiplomacy’ that serves as an informal cultural bridge between the two nations.

American brands are aggressively targeting the Chinese market. McDonald’s aims to reach 10,000 stores in China by 2028, while Burger King plans to expand to 4,000 locations by 2035. Church’s Texas Chicken has recently entered the Shanghai market with plans for at least 600 more locations. To succeed, many US chains, such as KFC, have adapted their menus to include local staples like congee and egg tarts.

Conversely, Chinese beverage and food brands are seeking growth in the United States due to intense domestic competition and a slowing economy at home. Companies such as Mixue, HEYTEA, and Luckin Coffee are expanding their presence in the US market. While these Chinese brands often leverage high price competitiveness, they may eventually face regulatory scrutiny regarding consumer data and tariffs.