Marketplace All-in-One Starbucks stirs things up in China
Nov 4, 2025
Surinjana Tawwari, a BBC correspondent focused on China's business landscape, discusses Starbucks' significant sale of a majority stake in its Chinese operations to Boyu Capital for $4 billion. She highlights how this move aims to tackle intense local competition. Meanwhile, Tim Mansell, a BBC reporter on automotive and labor stories, provides insight into Tesla's challenges, including its impending vote on Elon Musk's controversial pay package and recent strikes in Sweden, where workers rally for better collective bargaining rights.
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Starbucks Repackages China Strategy
- Starbucks will sell a 60% controlling stake in its China retail operations to Boyu Capital while keeping brand ownership and 40% equity.
- The deal values Starbucks' China business at over $13 billion and aims to spur growth amid local competition.
Local Competition Reshapes Strategy
- Starbucks sought a local partner as part of CEO Brian Niccol's restructuring to recover from COVID and rising local rivals.
- Increased competition from firms like Luckin Coffee pressured prices and growth in China.
Global Brands Have Followed Similar Paths
- Several global brands have spun off or exited China after struggling with fierce local competition and market dynamics.
- Foreign firms say operating in China is getting harder amid slowdown and consumer shifts to cheaper alternatives.