Starbucks has said it is forming a joint venture with Chinese investment firm Boyu Capital to operate Starbucks stores in China. Under the agreement, Boyu will pay USD 4 billion to acquire a 60 per cent interest in Starbucks' retail operations in China. Starbucks will retain a 40 per cent interest in the joint venture and will own and licence the Starbucks brand.

Starbucks entered China almost 30 years ago, and has been credited with growing coffee culture in the country. China is Starbucks' second-largest market outside the US, with 8,000 locations. But in recent years, the Seattle coffee giant has struggled in China with cheap, fast-growing Chinese startups like Luckin Coffee. Starbucks' same-store sales in China have fallen in both of its last two fiscals.