Starbucks Survived China

Despite the recent adversity, Starbucks Survived in the red China test. As a matter of fact, they passed the test by making themselves part of the red. At least, that's how Chinese read from a PR announcement released by the coffee mega corporation today.

After dozens of customers were found sick after taking a sip in a store in Beijing, Starbucks released an official through its PR department:

For our non-Chinese readers, here is a literal translation, with minimum adjustment to keep it most true and precise (the sentence structure is broken, as it is in Chinese, but you get the point):

Dear customers and fans of Starbucks:

Earlier today, on the feedback from patronages of the Dinghao Store in Beijing that caught the attention, we have provided a respond. This afternoon, senior supervisors of the Starbucks Beijing District had a good communication with those had been affected, and offered our caring and condolence, and will offer a special event when they will be able to experience and communicate with famous brewers, and will answer customers's questions and suggestions.

Starbucks always make it a priority to provide safe and good food and beverage. Appreciate fans and customers's support and love to us. We will keep working, as always to provide good Starbucks experience.

While some were saddened when they felt the company did not show a single thread of sorry or regret when dozens of its customers were ill, others were furious to see a symbolic of western life style had morphed into a communism outpost. The tone and language used in this PR release were exact what they would expect from any communist government agency after a tragedy.

Out of the 400 some comments so far, with few exception, all lashed on the ignorant attitude displayed in the PR release. Many questioned directly whether the company had been sold to the Party.

Starbucks' Trouble Might Have Been Planted One Year Ago

In the past few days, Starbucks have been under heavy bombardment from the propaganda branch CCTV. The official national television station blamed Starbucks for charging higher price in China. The TV program claimed that Starbucks charge a high price of $4.5 for a cup of Latte while the cost of coffee and milk was only $0.80.

Starbucks quickly responded that the material cost only contributed 18% of the price, and that there were other cost involved. In particular, Starbuck said, customers in China used to stay in the coffee shop longer than those in the west, thus increased expenses in store lease.

Customers in China reacted overwhelmingly in favor of Starbuck. The next day, many Starbucks stores find long line of customers waiting for a cup of coffee, partially in support of the coffee store, partially as a public defiance to the Propaganda mouthpiece.

Professor Wang Ye of University of Pittsburgh at Bradford suggested that Starbucks' trouble might had been planted when their CEO Howard Schultz visited China in April 2012. It was believed former Chinese President Jiang's influences were severely diminished at the once-a-decade power transition in March. Jiang's successor Hu Jintao announced that he would withdraw from decision-making entirely to pass the power to new President Xi Jinping. It was viewed as a public humiliation to Jiang's effort to stay in power even after he stepped down from the top position in China in 2003.

Jiang reacted with a news of his meeting with the visiting Schultz to reassure his base that he was still around. The Starbucks was accidentally caught in a crossfire between Jiang and Xi, who understandably would have wished that Jiang had gone away forever and for real.

As professor Wang pointed out, unfortunately, Starbucks stood on the wrong side.

In the meanwhile, Xi Jinping praised Wal-Mart and Coca-Cola for their contributions to Chinese economy.