CNBC's The China Connection newsletter: Starbucks enters Xinjiang in calculated geopolitical risk

CHONGQING, CHINA - OCTOBER 7: A Chinese national flag is displayed near a Starbucks store during the National Day Golden Week holiday on October 7, 2025, in Chongqing, China.Cheng Xin | Getty Images News | Getty ImagesHi, this is Anniek, writing to you from Singapore. Welcome to the latest edition of The China Connection — a snapshot of what I'm seeing and hearing from local businesses. Starbucks struck one of Asia's most closely watched deals last year, selling a majority stake in its China business to a local private-equity firm. Now it is getting headaches at home over choices made by a partner that increasingly leans toward Beijing's priorities. The big storyStarbucks Corp has taken its green apron to Xinjiang, a region where Western governments accuse Beijing of widespread human-rights abuses and where the U.S. restricts imports over forced-labor concerns.The opening of two stores in Urumqi shows how the Chinese private-equity firm that now controls Starbucks' business in its second-largest market is willing to weather Washington's anger. Starbucks completed the sale of a 60% controlling stake in its China operations to Boyu Capital in April. The venture aims to grow from roug...