Starbucks has rejected speculation that it is in talks with private equity firms to sell the entirety of its China operations as it faces slowing sales and intensifying competition from domestic rivals. “We have a world-class team in China, and a strong brand,” the Seattle-based coffee chain said in a statement on Tuesday. “We see significant long-term potential in the market and are evaluating the best ways to capture the future growth opportunities.” In recent years, the U.S. firm has struggled in China against competitors such as Luckin Coffee. To win back customers, Starbucks recently launched sugar-free options and cut prices on more than a dozen tea-based drinks to bring them closer to those of Chinese tea chains.
