The stores in Urumqi mark the first expansion into Xinjiang under the new ownership structure. The venture aims to grow Starbucks' China footprint from roughly 8,000 stores to as many as 20,000, according to the CNBC report that broke the news.
The U.S. House Select Committee on China called the decision "shocking and morally bankrupt" for "a company that prides itself on social responsibility" and demanded the stores close. Its chairman, Rep. John Moolenaar (R-Mich.), issued a statement headlined "Starbucks Serves Up Venti-Sized Genocide."
Beijing rejected the criticism. A Chinese Foreign Ministry spokesperson called U.S. claims of genocide "a blatant lie" and described Xinjiang as a region of "social stability, economic prosperity, ethnic unity and religious harmony." China has long defended its security crackdown in Xinjiang as necessary to counter terrorism and religious extremism, and denies allegations of "crimes against humanity" and ongoing repression.
Boyu, co-founded by Alvin Jiang, a grandson of the late President Jiang Zemin, is seen as having close ties to China's political elite. Ivy Yang, founder of Wavelet Strategy, said Boyu understood the sensitivity of Xinjiang as well as anyone and likely weighed Washington's reaction before concluding that the domestic commercial opportunity mattered more.
Starbucks has been losing ground on price and speed to local rivals in China, Yang said, and a new owner under pressure to deliver growth is likely to go where stores aren't yet. Molly Liu, chief executive of Starbucks China, in a recent statement pledged to keep investing in the region.
The opening also highlights a broader tension: Western companies face pressure to align with Chinese government priorities while navigating U.S. political scrutiny. Some observers see the move as a purely commercial decision, while others argue it cannot be divorced from geopolitics. The CNBC article noted that Boyu — run by people who know China's politics well — wouldn't have missed the risk.