Starbucks Opens Two Cafés in Urumqi as Lawmaker Demands Closure
Starbucks opened two new cafés in Urumqi on October 3, 2025, sparking an immediate pushback from Washington and renewing scrutiny over the company’s supply chain and regional partnerships. The expansion into the capital of China’s Xinjiang region places the coffee giant under direct pressure from U.S. lawmakers who argue the storefronts link an American brand to the ongoing repression of the Uyghur minority.
John Moolenaar, chairman of the House Select Committee on the Chinese Communist Party, called the store openings schockierend und moralisch bankrott
(shocking and morally bankrupt), according to finanztrends.de. Moolenaar urged Starbucks to immediately change course and shutter its Xinjiang locations. The company established the new sites at the Grand Bazaar and the international airport following a spring transaction that transferred a 60 percent stake in its mainland China retail business to the financial investor Boyu Capital, leaving Starbucks with a 40 percent remaining share.
Federal Court Rejects Starbucks Bid to Dismiss Union Lawsuit
While political opposition mounts over the Xinjiang expansion, Starbucks suffered a concurrent legal setback in Pennsylvania. U.S. District Judge Michael Baylson denied the company’s motion to dismiss a lawsuit filed by Workers United, rejecting the argument that no active dispute existed, finanztrends.de reported. The ruling centers on a 2024 agreement between the parties concerning the union’s right to use the name “Starbucks Workers United” and a modified fist-raised logo.
The litigation timeline shows the dispute returning to federal courts after failed negotiations. The union filed a fresh complaint in April, followed by a Starbucks lawsuit in Iowa in June. As goldesel.de noted in its market analysis, shareholder groups are concurrently pressing the company to reinstate a labor committee due to the ongoing absence of a signed collective bargaining agreement.
Corporate Precedents and Market Pressures in Xinjiang
The controversy mirrors challenges faced by other multinational corporations operating in Xinjiang. Volkswagen previously endured years of criticism over its manufacturing footprint in the region before selling its stake at the end of 2024. Conversely, apparel brands H&M and Adidas faced severe consumer boycotts within mainland China in 2021 after raising public concerns about potential forced labor.
Goldesel.de reported that while the Xinjiang footprint creates a distinct reputational risk for Starbucks, the simultaneous labor friction and shareholder demands highlight a broader operational squeeze. Equity shares in Starbucks recently traded near $95, showing slight downward movement as both legal battles and legislative pressure persist.
Frequently Asked Questions About the Starbucks Controversy
Where are the new Starbucks locations in Urumqi?
Starbucks opened two cafés in Urumqi on October 3, 2025—one situated at the Grand Bazaar and the other at the international airport, as reported by finanztrends.de.
Who owns the Starbucks China retail business following the restructuring?
In the spring of 2025, Starbucks sold a 60 percent stake in its China retail business to the financial investor Boyu Capital, retaining the remaining 40 percent interest.
What is the status of the trademark litigation in Pennsylvania?
U.S. District Judge Michael Baylson denied the company’s dismissal motion on Friday, allowing Workers United to proceed with its lawsuit regarding the use of the union name and modified logo.
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