US congressman calls on Starbucks to close its first stores in Xinjiang, China

Reuters | October 02, 2026 at 09:40 AM UTC
Bearish 72% Confidence Unanimous Agreement
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Key Points

  • Starbucks opened two stores in Urumqi, Xinjiang's capital, including locations at the grand bazaar and international airport, with plans to continue investing in the region
  • Moolenaar criticized the move, citing detention of over one million Uyghurs and suppression of their faith, language, and culture by Chinese authorities
  • Starbucks operates approximately 8,000 outlets in China through a joint venture with Boyu Capital holding a 60% stake, finalized in April 2026

AI Summary

Summary: US Lawmaker Pressures Starbucks Over Xinjiang Store Openings

Key Development:

Starbucks opened its first two stores in Xinjiang, China this week, located in the regional capital Urumqi—one at the city center's grand bazaar and another at the international airport. The move has drawn sharp criticism from US lawmakers.

Political Response:

Representative John Moolenaar, chairman of the House Select Committee on China, called the expansion a "morally bankrupt decision" and urged Starbucks to immediately close the stores. He referenced the detention of over one million Uyghurs and alleged suppression of their faith, language, and culture by the Chinese Communist Party. China denies these accusations, stating its policies target terrorism, separatism, and religious extremism.

Company Position:

Starbucks China CEO Liu Wenjuan stated the company would continue investing in Xinjiang, describing the stores as blending local culture with customer needs. Neither Starbucks nor China's Foreign Ministry responded to comment requests, with China observing its national day holiday.

Business Context:

In April 2026, Starbucks finalized a China joint venture with Boyu Capital holding a 60% stake, operating approximately 8,000 outlets across China. Store images showed signage in English and Chinese, with no visible Uyghur-language signs, despite Uyghur's official status in the region.

Market Implications:

This development highlights growing tensions for US companies operating in politically sensitive Chinese regions. Starbucks faces potential reputational risks in the US market while maintaining its significant Chinese operations, creating a challenging geopolitical balancing act for the coffee giant's international expansion strategy.

Model Analysis Breakdown

Model Sentiment Confidence
GPT-5-mini Bearish 70%
Claude 4.5 Haiku Bearish 68%
Gemini 2.5 Flash Bearish 80%
Consensus Bearish 72%