Starbucks has announced the sale of a 60% stake in its China operations to Boyu Capital for US$4 billion, drawing significant attention from observers. Guo-Chen Wang, an Assistant Research Fellow at the First (Chinese Economy) Research Division of the Chung-Hua Institution for Economic Research (CIER), noted that this move reflects declining foreign investor confidence in the Chinese market and represents a “risk hedging strategy” aimed at diversifying risk and maintaining flexible positioning.
Assistant Research Fellow Guo-Chen Wang’s analysis indicates that post-pandemic weakness in China’s domestic demand, rising youth unemployment, and declining middle-class purchasing power have intensified operational pressures for premium brands, prompting foreign businesses to adopt a more cautious approach overall. In contrast, Taiwanese enterprises have demonstrated greater agility in responding to global market shifts, with multiple restaurant and manufacturing operators already expanding into North America.
Under the “Trump 2.0” policy framework in the United States, the investment environments in North America and Europe have remained relatively stable, with their appeal continuing to strengthen. This Starbucks transaction not only demonstrates weakening growth momentum in China’s consumer market but also highlights the trend of foreign investors reassessing their strategic positioning in China.
Author: CIER Editorial Team
Date: November 6, 2025