US Lawmaker Demands Starbucks Close New Stores in China's Xinjiang

A prominent U.S. lawmaker has publicly called for Starbucks (SBUX) to close its first two coffee shops in China's Xinjiang region, escalating political pressure on American corporations operating in the area amid allegations of widespread human rights abuses.

Lawmaker's Condemnation

Representative John Moolenaar, Chairman of the House of Representatives' Select Committee on China, condemned the company's expansion into Xinjiang's capital, Urumqi. In a statement issued Thursday, Moolenaar urged Starbucks to "immediately reverse course and close its stores."

He described the company's move as a "shocking and morally bankrupt decision" for a brand that emphasizes social responsibility. The statement cited the Chinese Communist Party's detention of over a million Uyghurs and efforts to suppress their culture and religion as the basis for his demand.

Starbucks' Xinjiang Debut

Starbucks opened its first two locations in Urumqi this week, according to a Reuters report. The stores are situated at:

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• The city center's grand bazaar
• The Urumqi international airport

In a post on its official WeChat platform, Starbucks' China CEO, Liu Wenjuan, stated the company would continue investing in Xinjiang. The company positioned the new stores as an experience that blends local culture with customer needs. However, images shared by the company reportedly showed signage in English and Chinese, with no apparent use of the local Uyghur language.

Context and Market Risk

Operating in Xinjiang presents significant geopolitical and reputational risks for Western companies. The U.S. government and other international bodies have accused China of severe human rights violations against the mainly Muslim Uyghur people, which Beijing denies, claiming its policies are aimed at combating terrorism and extremism.

For investors, such corporate decisions can introduce volatility and attract regulatory scrutiny. Starbucks finalized its China joint venture in April 2026, with strategic investor Boyu Capital holding a 60% stake. The venture operates approximately 8,000 outlets in China, a critical growth market for the coffee giant. Neither Starbucks nor China’s Foreign Ministry provided an immediate response to requests for comment, as reported by Reuters.