China's President asks former Starbucks boss Schultz for help

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Howart Schultz in China (archive photo): Can the top manager mediate in the trade dispute?

Photo: LIU JIN / AFP

It is an unusual request for help: China's President Xi Jinping has asked the former head of the US coffee house chain Starbucks, Howard Schultz, to help improve trade relations between Beijing and Washington.

As reported by the state-run Chinese news agency Xinhua, in response to a letter from Schultz, Xi asked for a further "positive role" for the US billionaire "in promoting Sino-US economic and trade relations."

The outgoing US President Donald Trump had started a trade dispute with China as part of his "America First" policy.

Trump particularly lamented the high US trade deficit with China and accused Beijing of unfair trade practices.

Despite years of conflict with massive mutual punitive tariffs, Trump did not succeed in reducing the trade deficit.

According to figures from Chinese Customs, it grew by 7.1 percent to $ 316.9 billion last year.

One reason is the increased demand for electronic and medical products since the beginning of the corona pandemic.

Future US President Joe Biden, who will take office next Wednesday, is expected to adopt a more diplomatic approach overall.

But he too had announced a tough stance towards China during the election campaign.

In his letter to Schultz, Xi pledged to offer companies from all over the world, including Starbucks and other US companies, greater development space in China in the future.

Starbucks says it has already opened more than 4,700 stores in the People's Republic.

Schultz, who has been Honorary Chairman of the Board of Directors of Starbucks since his retirement in 2018, met Xi personally at a reception in Seattle during his visit to the United States in 2015.

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