US lawmakers have urged Starbucks to close newly opened outlets in China’s Xinjiang, saying it was a “morally bankrupt decision” to operate in a region where Beijing has been accused of widespread human rights abuses against Muslim minorities.
The coffeehouse chain, which last year sold a controlling stake in its China retail business to the Hong Kong-based investment firm Boyu Capital, opened two stores in the region on Tuesday.
Videos on Chinese social media showed long queues for the flagship store in Urumqi’s Grand Bazaar tourist area, with influencers showing off special edition drinks including “milk-skin-flavoured salty milk tea”.
But John Moolenaar, the chair of the US House of Representatives’ select committee on China, called the move “morally bankrupt”.
“There is no justifiable reason for an American company to do business in a region where the Chinese Communist party has detained more than a million Uyghurs and is stripping them of their faith, language and culture,” he said. “Every cup sold in these stores ties an iconic American brand to the CCP’s brutal campaign against the Uyghurs.”
Washington is among several governments and rights groups that have accused China of genocide in Xinjiang, which Beijing has categorically denied.
The United Nations has warned of possible crimes against humanity, including the detention of more than a million Uyghurs and other Muslim minorities in camps.
China says these were “education camps” and that crackdowns were necessary to combat terrorism.
The World Uyghur Congress advocacy group called on Starbucks to “stand on the right side of history”.
“The presence of Starbucks in Xinjiang’s streets … fits in the party state’s narrative, that there’s nothing wrong about the region,” said Human Rights Watch’s deputy Asia director, Maya Wang.
Responding to the US comments, the Chinese foreign ministry told Reuters that allegations of repression were “naked lies” and that Xinjiang enjoyed a “stable society, economic growth, racial unity and religious harmony”.
The Guardian has contacted Starbucks and Boyu Capital for comment.
China has poured resources into developing Xinjiang as a tourism destination in recent years.
Starbucks is far from alone in seeing the commercial appeal there: other major western brands such as Hilton and InterContinental Hotels Group have been criticised for their operations too.
Critics have characterised Xinjiang’s development as “Disneyfication” – commodifying the region’s heritage even as its inhabitants’ ability to practise their culture on their own terms has been restricted.
On Chinese social media, excited visitors posted pictures of Starbucks-branded merchandise, including patterned flasks and teddy bears in outfits based on local ethnic dress.
When the deal with Boyu Capital was announced, Starbucks said it would bring “deep local expertise”, with analysts noting the US behemoth had been losing ground to domestic competitors for some time.
The move by Starbucks makes “commercial sense”, said Yaling Jiang, the founder of the research and strategy consultancy ApertureChina.
“What is politically correct in China is not necessarily politically correct in the rest of the world, and this is a prime example,” she said. “Starbucks in China is now operating from a Chinese perspective rather than a US perspective, and that is ultimately how they can win in China.”
