Starbucks announced Monday that it would sell a majority stake in its China business to Boyu Capital in a deal valued at $4 billion, about a year after CEO Brian Niccol took over and began a restructuring.
The company had been carrying out a formal process since May 2025 to find a local partner for Starbucks China. Goldman Sachs was advising the Seattle-based company on the sale.
Starbucks is not the first American brand to divest or partially sell its operations in China, as competition between the world’s two largest economies grows.
US President Donald Trump met with Chinese President Xi Jinping on Thursday, extending a delicate trade truce and reaching an agreement that averted the Republican’s threat to impose a 100% tariff on Chinese goods.
Below is a list of other US companies that have reduced their exposure to China:
BEST BUY (2014)
Best Buy exited its retail business in China by selling its chain of 184 Five Star stores to domestic property group Zhejiang Jiayuan Group, citing a strategic focus on North America. Best Buy has struggled to take on Chinese rivals in a crowded market, while other American companies have complained that operating in the country has become increasingly difficult.
YUM BRANDS (2016)
In 2016, KFC and Pizza Hut owner Yum Brands sold a stake in its Yum China business to investment firm Primavera Capital and an affiliate of Alibaba Group Holding for $460 million.
Later that year, Yum China was spun off and listed separately on the New York Stock Exchange due to pressure from activist investors following food scandals and marketing mistakes.
Since then, Yum China has grown rapidly with its KFC stores, which with 12,000 locations in China outnumber locations in the U.S., and China-specific brands like KCOFFEE.
More context in: Starbucks to sell control of its China business in $4 billion deal
UBER (2016)
Uber sold its China operations to rival Didi Chuxing in August 2016. In exchange, Uber investors received an equity stake of around 20% in Didi, ending a costly price war. The deal valued the new entity at about $35 billion.
MCDONALD’S (2017)
In 2017, McDonald’s sold a majority stake in its business in China and Hong Kong to state-backed conglomerates CITIC Ltd and Carlyle Group for up to $2.1 billion. At the time, McDonald’s was struggling in the country due to a tainted meat scandal and fierce competition from local chains, after years of rapid expansion.
In 2023, McDonald’s increased its stake in the Chinese business to 48% by purchasing Carlyle’s 28% stake, valuing the stake at $6 billion. McDonald’s CEO Chris Kempczinski said the company wanted to “benefit from the long-term potential of our fastest-growing market.”
Beyond fast food, Walmart, the largest American retailer, has made no moves to give up even partial control of its China division, although its China unit is not publicly traded. The company is expanding the number of stores and online presence of its popular Sam’s Club discount stores in the country.
AMAZON (2017-2019)
To comply with increasingly strict Chinese regulations, Amazon sold certain physical assets of the Amazon Web Services (AWS) business in China to its local partner Beijing Sinnet Technology. The sale was valued at around 2 billion yuan.
In 2019, Amazon closed its domestic market in China to focus on cross-border commerce and the cloud.
GAP (2022-2023)
US clothing retailer Gap sold its mainland China business to Baozun as the consumer brand faced persistent difficulties in the world’s second-largest economy.
Baozun said at the time that his unit would pay up to $50 million to acquire Gap Shanghai Commercial and Gap Taiwan Ltd, which operated all of Gap’s business in mainland China.
The Shanghai entity reported a net loss after tax of 256 million yuan ($35.34 million) in 2021, compared with 456.3 million yuan in the previous year, according to a Baozun report. The entity in Taiwan reported a net loss after tax of $6.24 million for the year ended January 29, 2022.
With information from Reuters
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