According to what the Chinese state media (CCTV)’s report, Starbucks is charging higher prices in China than other global markets. They compared the prices in Beijing to Chicago, and a tall latte is almost one-third more expensive in Beijing, which is around $4.43. It is funny that the Chinese government or the state media never talk about their high housing price, and so concern about the price of one coffee, it is ironic that they are afraid people who can buy a million-dollar house cannot afford one 27 yuan coffee.
Official Chinese media has been mad about Apple company long time ago, and now they turned to the world’s largest coffee chain, it is clearly that they are trying to target other prominent foreign companies and come amid a pricing crackdown by regulators.

Starbucks has been able to enjoy high prices in China, and became so popular only because of the blind faith of local consumers in Starbucks and other Western brands from Chinese customers.In my view, Starbucks’s pricing strategy is based on local market costs, including infrastructure investment, labor, commodity costs, currency valuation, real estate and other costs of doing business, and so as other customers, most Chinese people think the Chinese government is over reactive this time. And for now, I don’t think Starbucks will be lowering prices to satisfy the Chinese government.