Full Breakdown
Starbucks Opens Xinjiang Stores Amid U.S. Congressional Criticism and Shareholder Pressure
By Drooid · · How we work
Core Event: First Xinjiang Outlets Begin Operations
On September 29, 2026, Starbucks opened two cafés in Urumqi—one in the International Grand Bazaar and another in Tianshan International Airport. The openings mark the chain’s debut in a market of roughly 26 million residents and add to its China footprint of 8,342 stores as of September 27, 2026.
Background & Context
In April 2026, Starbucks sold a 60 % controlling stake in its China business to Hong-Kong-based Boyu Capital. The joint venture, which retains Starbucks’ brand, announced a plan to grow from about 8,000 stores to as many as 20,000.
Xinjiang has drawn international scrutiny over alleged forced-labor practices and human-rights abuses. The U.S. Uyghur Forced Labour Prevention Act (UFLPA) restricts imports linked to such labor, and several U.S. lawmakers have called for corporate disengagement from the region.
Official Statements & Responses
- Chinese Foreign Ministry spokesman Guo Jiakun rejected U.S. criticism, saying the openings demonstrate regional stability.
Criticism & Opposition
- Rep. John Moolenaar, chair of the House Select Committee on China, called the expansion “morally bankrupt” and urged an immediate closure.
- Steve Milloy, executive director of the National Center for Public Policy Research’s Free Enterprise Project, sent a letter on October 2, 2026 demanding Starbucks close the stores and disclose any forced-labor exposure in its solar-energy supply chain. He filed a shareholder proposal on September 28, 2026 requesting a detailed report on the provenance of silicon used in renewable-energy projects.
Data & Statistics
- Store count: 8,342 Starbucks locations in mainland China (Sept 27 2026).
- Expansion goal: up to 20,000 stores under the Boyu-led joint venture.
- Xinjiang tourism: 323 million visits in 2025, an 8 % year-on-year increase, with spending of 370 billion yuan.
- Retail sales: 263.03 billion yuan in the first eight months of 2026, up 0.3 % YoY.
- Foreign-invested enterprises: 2,647 registered in Xinjiang by June 2026, a 6.91 % rise from the prior year.
Why It Matters
The Xinjiang openings place Starbucks at the intersection of U.S. legislative pressure, shareholder activism, and China’s push for foreign investment in a contested region. U.S. officials argue the move conflicts with the company’s human-rights commitments, while Chinese authorities present it as evidence of economic openness. The dispute underscores the challenges multinational firms face navigating divergent regulatory regimes.
Conflicting Reports & Gaps
- Human-rights allegations: U.S. lawmakers and advocacy groups cite forced-labor reports; Chinese officials deny “genocide” and claim “social stability.”
- Supply-chain transparency: The shareholder proposal seeks verification of forced-labor exposure in Starbucks’ solar-panel supply chain, but the company has not released a detailed audit.
Verbatim Quotes
- “It is appalling that Starbucks is now selling coffee to Chinese Communist Party elites as they commit crimes against humanity and ethnic genocide,” — Steve Milloy, Free Enterprise Project
- “Starbucks cannot have it both ways,” — Steve Milloy, Free Enterprise Project
- “Entering Xinjiang is not only about further expanding our store network, but also gives us an opportunity to go deeper into this vibrant market and build long-term connections with consumers here,” — Molly Liu, CEO of Starbucks China