US Congress Members Demand Starbucks Close Outlets, Calling it 'Morally Bankrupt'

Starbucks is facing intense scrutiny from members of the US Congress following the opening of two new outlets in Xinjiang, China. US legislators are urging the coffee chain to close its stores in the region, which has been a focal point regarding alleged human rights abuses against Muslim minority groups.

John Moolenaar, Chairman-elect of the US House Committee on China, described Starbucks’ decision to operate in Xinjiang as ‘morally bankrupt’.

‘There is no justification for an American company to do business in a region where the Chinese Communist Party has detained over one million Uyghurs and stripped them of their beliefs, language, and culture,’ Moolenaar stated, as reported by The Guardian.

‘Every cup sold in these outlets links an iconic American brand to the CCP’s brutal campaign against the Uyghurs,’ he added.

Starbucks opened two outlets in Xinjiang last Tuesday. This expansion follows the company’s sale of its controlling stake in its Chinese retail business to Boyu Capital, a Hong Kong-based investment firm, last year.

Starbucks’ presence immediately drew local attention. Videos circulating on Chinese social media showed long queues at the flagship Starbucks outlet located in the Grand Bazaar tourist area in Urumqi. Several influencers also posted about special edition drinks sold at the store, including a ‘salted milk tea with skin flavour’.

Starbucks’ presence in Xinjiang is sensitive because the Chinese government has faced years of allegations regarding its treatment of Uyghurs and other Muslim minority groups. Washington is among several governments and human rights organisations accusing China of genocide in Xinjiang, allegations which the Chinese government firmly denies.

The United Nations has previously warned of the possibility of crimes against humanity, including the detention of over one million Uyghurs and other Muslim minorities in camps. China describes these facilities as ‘education’ camps and maintains that such measures are necessary to combat terrorism.

The World Uyghur Congress, an advocacy group, has also called on Starbucks to ‘stand on the right side of history’. Maya Wang, Deputy Director for Asia at Human Rights Watch, stated that Starbucks’ presence in Xinjiang could provide legitimacy to the Chinese government’s narrative.

‘The presence of Starbucks on the streets of Xinjiang… aligns with the state-party narrative that nothing is wrong in the region,’ Wang said.

Responding to the US criticism, the Chinese Foreign Ministry told Reuters that allegations of oppression are ‘utter lies’. China also stated that Xinjiang enjoys ‘social stability, economic growth, racial unity, and religious harmony’.

In recent years, the Chinese government has invested significant resources into developing Xinjiang as a tourist destination. Starbucks is not the only Western brand seeing business opportunities in the region; several other major companies, including Hilton and InterContinental Hotels Group, have also faced criticism for their operations in Xinjiang.

Critics have even referred to the development of Xinjiang as a form of ‘Disneyfication’. This term refers to the commercialisation of the region’s cultural heritage at a time when the inhabitants’ freedom to practice their culture is reportedly increasingly restricted.

On Chinese social media, visitors were seen enthusiastically sharing photos of various Starbucks merchandise, including patterned thermoses and teddy bears dressed in local ethnic-inspired clothing.

When the deal with Boyu Capital was announced, Starbucks stated that the investment firm would bring ‘deep local expertise’. Analysts noted at the time that the move was necessary as Starbucks had been losing market share in China to domestic competitors.

Yaling Jiang, founder of the research and strategy consultancy ApertureChina, believes the decision to open stores in Xinjiang involves business considerations.

‘What is considered politically correct in China is not necessarily considered politically correct in other parts of the world, and this is a prime example,’ Jiang said. ‘Starbucks in China now operates from a Chinese perspective, rather than a US perspective, and ultimately, that is how they can win the competition in China.’