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Financial Times••2 min read

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Starbucks Opens First Cafes in China's Xinjiang

Starbucks Opens First Cafes in China's Xinjiang

Starbucks, the global coffeehouse chain, has expanded its presence in China by opening its first two stores in the Xinjiang Uyghur Autonomous Region. The first café commenced operations in Urumqi, the regional capital, on March 19, 2024, followed by a second location in the same city on March 21, 2024. This expansion into Xinjiang marks a significant geographical reach for the company within China, a market where it has been operating for over two decades and boasts more than 6,800 stores across 270 cities. The opening occurs against a backdrop of international scrutiny and allegations of widespread human rights abuses against Uyghurs and other ethnic minorities in Xinjiang, claims that the Chinese government has consistently denied. Starbucks has stated that its expansion into new markets is driven by customer demand and a commitment to serving communities. The company's entry into Xinjiang has drawn attention from human rights organizations and observers monitoring the region's complex geopolitical situation. Starbucks has a long-standing presence in China, having first entered the market in Shanghai in 1999. The company has previously emphasized its adherence to local laws and regulations in all markets where it operates. The decision to open stores in Xinjiang has been met with mixed reactions, highlighting the delicate balance companies must strike when operating in regions with contentious human rights records. Starbucks has not made specific statements regarding the human rights situation in Xinjiang in relation to its business operations, instead focusing on its role as a coffee retailer and employer. The company's global strategy involves continuous growth in key international markets, with China being a primary focus for expansion and investment. The opening of these two cafés in Urumqi signifies Starbucks' ongoing commitment to the Chinese market, even as international attention remains fixed on the human rights issues in the region. The company's operations in China are managed through its joint venture partner, Maxim's Caterers Limited, which holds the license for Starbucks stores in the mainland. This expansion into Xinjiang is part of Starbucks' broader plan to reach 55,000 stores globally by 2030, with China projected to be its largest market outside of the United States.

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