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US coffee chain giant Starbucks said that it is not considering a full sale of its China business at the moment, the company told the Global Times on Tuesday.

The remarks came after Caixin Global reported on Monday that "Starbucks Corp is considering selling its China operations, signaling a strategic shift as the American coffee giant grapples with declining market share and mounting pressure from low-cost domestic rivals."

In response to the Global Times' request for comment on the report, Starbucks said that it believes there is tremendous growth opportunity in the Chinese market.

"We are evaluating the best way to seize future growth opportunities, and we will continue to focus on achieving revitalized growth in China and maintaining positive development trends," it said.

Starbucks' performance in the Chinese market has continued to be under pressure, and the rise of local competitors has further eroded its market share, according to media reports.

Local brands represented by Luckin Coffee have attracted a large number of price-sensitive consumers through price cuts and rapid expansion, which has impacted Starbucks' traditional high-end positioning.

To cope with competitive pressure, Starbucks recently adopted a price adjustment strategy in the Chinese market. The company has announced lower prices on more than a dozen drinks and launched sugar-free options to lure local consumers.

Bloomberg reported on Tuesday that the same-store sales in China were flat last quarter after dropping for four straight quarters. 

The company had approached investors as it considered options for its China business, including a possible stake sale, Bloomberg News has reported. Chief Executive Officer Brian Niccol said last year that Starbucks was exploring partnerships to help it over the long term, without elaborating.

Global Times