Caixin OnlineOpinionCommentaries Starbucks Prices Are as Plain as Black Coffee
10.25.2013 19:50

Starbucks Prices Are as Plain as Black Coffee

Why is a latte more expensive in Beijing than London? Because China is an emerging economy forcing hidden costs on companies and Britain isn't
By Qiao Xinsheng
A

Starbucks has been under fire recently over its prices. State media says the international coffee chain has been ripping off China's coffee drinkers.

Under the Price Law and related regulations, if the price of a product is higher than the market price for similar products, then a company can be punished for illegal profiting. However, the high-end coffee market in the country is not perfectly competitive, so it is unclear whether Starbucks has violated the law.

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