Debate brewing over Forbidden City Starbucks

Chinese journalist leads charge to get coffee shop out of historic palace

BEIJING — Beijing's Forbidden City palace is considering closing a Starbucks on its grounds after protests
led by a state TV personality who says the American coffeehouse's presence is eroding Chinese culture, a
news report said Thursday.

"The museum is working with Starbucks to find a solution by this June in response to the protests," the
official Xinhua News Agency quoted a palace spokesman, Feng Nai'en, as saying.

A news anchor for China Central Television has led an online campaign to remove the Starbucks, which
opened in 2000 at the invitation of palace managers, who needed to raise money to maintain the 587-year-
old complex of villas and gardens.

Starbucks' presence "undermined the Forbidden City's solemnity and trampled over Chinese culture," the
anchorman, Rui Chenggang, wrote in his blog. Xinhua said "thousands of Chinese" backed the campaign
but did not say how.

Starbucks' fate will be decided as part of a renovation that already has seen one-third of the shops
removed from the vermillion-walled, 178-acre palace, Feng said.

"Whether or not Starbucks remains depends on the entire design plan that will be released in the first half
of the year," he said.

Starbucks' vice president for Greater China, Eden Woon, declined to say whether the two sides were
discussing closing the outlet.

But the company issued a statement defending its operation.

"Starbucks appreciates the deep history and culture of the Forbidden City and has operated in a respectful
manner that fits within the environment," the statement said. "We have provided a welcome place of rest
for thousands of tourists, both Chinese and foreign, for more than six years."

The palace Starbucks has been the target of similar criticism in the past. Shortly after it opened, the
company agreed to remove an outdoor sign following complaints that it was inappropriate.

The palace is among 24 Chinese sites granted World Heritage status by the U.N. Educational, Scientific
and Cultural Organization.

The communists have been accused of failing to maintain China's vast inheritance of palaces, temples and
other cultural sites and of seeking such UNESCO designations to promote tourism.

Rui, the driving force behind the Starbucks protest, is a telegenic 29-year-old Communist Party member
and fluent speaker of English who works for CCTV's English-language channel.
The controversy is unusual for Rui, a rising media star who spent the 2005-06 school year as a visiting
fellow at Yale University. His blog says that at Yale, he gave talks to undergraduates "introducing to them
the truth about the fatherland."

Other entries on his blog describe a drive in California and his meetings with former U.S. Secretary of
State Henry Kissinger and other famous people.

The controversy was reported Thursday on CCTV's national midday news, though it failed to mention that
the protests were initiated by one of the broadcaster's employees.

The report quoted an unidentified Chinese visitor as saying tourists found it odd that Starbucks was in the
palace.

Seattle-based Starbucks Corp. opened its first China outlet in 1999 and has grown to 220 coffeehouses.
Chairman Howard Schultz described China last year as the company's No. 1 growth market.

Last February, Starbucks gave $1.5 million to a Chinese teacher-training program and said it planned to
make an additional $3.5 million in charitable donations in China.

The Forbidden City was home to 24 emperors before the end of imperial rule in 1911. It is China's top
tourist attraction, drawing some 7 million visitors a year.

Other businesses on its grounds include bookstores, souvenir shops and Chinese-style teahouses.

The renovation, due to last through 2020, is meant to restore the palace to its imperial-era appearance and
calls for tearing down a five-story museum and other modern buildings.

Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast,
rewritten or redistributed.

Forbidden Starbucks
Starbucks has been banished from Beijing's Forbidden City. China says its cultural history and
American coffee chains shouldn't mix

by Dexter Roberts

Want to grab a Green Tea Frappuccino or a Grande Latte? For the past seven years, visitors to Beijing's 587-year-old
Forbidden City have had that option as they tramped through the historic complex of sprawling gardens and halls that
takes up 178 acres at the heart of Beijing. But that ended when Starbucks (SBUX) finally shut its store on July 13
after a storm of opposition from patriotic mainland Chinese. "The Forbidden City is a cultural and historical site,
while Starbucks represents the fast pace of metropolitan life," says Maggie Chen, a 26-year-old membership
salesperson at a Shanghai golf club. "The two should not be mixed together," she says, echoing the sentiments raging
across the Internet in recent months.

The campaign to oust the Seattle-based coffee chain from one of China's most historic sites was led by a popular
news anchor from the country's national television broadcaster, CCTV, who ignited a firestorm after taking up the
issue on his popular blog last year. "Starbucks has good quality stuff, but it is still a symbol of America's low-class
food culture," wrote Rui Chenggang on Jan. 12, 2007. "It's maybe O.K. to have a Starbucks around the Forbidden
City. But having one inside the City is inappropriate. This is not globalization, but an erosion of Chinese culture."
Expanding Elsewhere

Starbucks, for its part, downplays the importance of the store's closure and says the company was given the option of
continuing its coffee business in the same location, albeit not under the Starbucks name. "We would have had to use
the Forbidden City as our brand. The other choice was to shake hands and part ways," explains Eden Woon,
Starbucks' vice-president for Greater China. "We decided we can't operate a store that on the marquee says Forbidden
City Coffee."

Not surprisingly, Starbucks still has big plans for China. Of its 530-some shops in Greater China (which includes
Taiwan, Hong Kong, and Macao), around half, or about 260 outlets, are on the mainland, points out Woon. "We
continue to think China will become our second-largest market outside of the U.S.," passing Britain and Japan in
importance within several years, says Woon.

Indeed, even among those happy to see Starbucks vacate the Forbidden City, there are fans of the coffee giant. "I like
the 'Starbucks feel,'" says golf club salesperson Chen, adding that she frequents Starbucks several times a week. "I
like the environment. If I want to go somewhere to sit down, relax, or read, there is nowhere else I would go except a
Starbucks."

Roberts is BusinessWeek's Beijing bureau chief.

Starbucks brews storm in China's Forbidden CityBEIJING, China (Reuters) -- Call it

globalization gone crazy, nationalistic nonsense or just a storm in a coffee cup.

The opening of a Starbucks in Beijing's Forbidden City is brewing a storm in China, with outraged local media
reporting that 70 percent of people would rather not sip the American chain's frappuccinos in the footsteps of the Son
of Heaven.

"This is no different from slapping China's 1.2 billion people and 5,000-year traditional culture in the face," said the
China Consumer Journal. "Some people's anger is no different from their feelings when our embassy was bombed."

U.S.-bashing has been in vogue since American warplanes bombed the Chinese Embassy in Belgrade during NATO's
bombardment of Yugoslavia during the 1999 Kosovo crisis, triggering an outpouring of fury in Beijing.

But the media backlash against Starbucks took officials at the 600-year-old Forbidden City by surprise. Now they are
considering revoking the coffee chain's one-year license after just two months in business.

"The pressure from the media was far greater than we expected," said Chen Junqi, an official of the Palace Museum,
as the former residence of the Ming and Qing dynasty emperors is now known. "There are only two ways to solve
this: to wait until the contract expires or to prematurely revoke it."

Nor is Starbucks alone. Kentucky Fried Chicken will be booted out of Beihai Park, another Imperial site in the city
center, when its lease expires in 2002. And McDonald's recently removed its golden arches from outlets by
Tiananmen Square.

"It's about a certain conflict and misunderstanding between China and the West," Chen said.

The moves reflect China's ambiguous attitude about growing Western economic and cultural influence and its own
identity. Young Chinese crave Western brand names and visas but Communist officials frequently rant at what they
call decadent Western culture and "hegemonism" in world affairs.

China officially condemns the imperial era as corrupt and feudal, but most Chinese boast proudly of their 5,000-year
history and regard the Forbidden City as its cultural heart. And for all the talk about preserving China's cultural relics,
city planners have torn down thousands of old courtyard houses to make way for Western-style skyscrapers and
malls.

But few would have thought a tiny coffee bar in the corner of an existing souvenir shop could whip up such a froth.
Testing the waters

The museum's management says it expected none of this when it decided to upgrade facilities for the 5 million
Chinese and 1 million foreigners who visit each year. "We just wanted to throw a stone and watch the ripples, to test
the waters," said Chen.

They awarded a contract in September to Meida Coffee Co., which owns the Starbucks franchise for northern China,
over two other firms that Chen declined to name. But a survey by popular Chinese Internet portal www.sina.com.cn
showed 70 percent of those interviewed were opposed to having any sort of coffee shop in the Forbidden City.

"Now Starbucks has marched straight into the holy site to compete with ancient oriental civilization," said the Beijing
Weekend newspaper.

The shocked museum demanded the outlet take down two Starbucks signs and is now reviewing the license. "I can
understand the public's feelings," said Chen. "And I am very moved that so many people care about our cultural
buildings."

Visitors: 'What's the fuss?'

But the museum's own survey showed more than 50 percent of visitors were in favor of the coffee outlet, he said.
"The problem is many people think it's a huge Starbucks cafe with big signs like the ones on the street. We'd never
allow that."

In fact, several tourists on a recent visit to the Forbidden City said they had not even noticed the Starbucks. Others
were grateful for a chance to ward off the winter cold.

"I don't see what the fuss is about," said Liu Ying, 24, from Shanghai, warming her hands on a cappuccino as she
teetered on platform heels through the Forbidden City's vast courtyards. "I think it's a good chance to show how open
and cosmopolitan China has become," she said.

But for some, it is a matter of principle. "What will happen next?" asked Yao Hong, 61, a retired engineer visiting the
site. "We'll have a McDonald's here and a Kentucky Fried Chicken there. Why couldn't they open a Chinese tea
shop?"

Starbucks insists its outlet does not impinge on the site's atmosphere. "Starbucks strives to respect the local cultural
heritage in every country where it does business," said Pedro Man, president of Starbucks Coffee Asia Pacific Ltd.

"With regard to the Forbidden City store, it was a landmark location and we worked closely with Forbidden City
Museum authorities to respect the historical relevance of the site."

ironically, the controversy over what is probably Starbucks' smallest outlet in China has generated more publicity
than the rest put together.

"They win either way," said Chen. "There'll be plenty of publicity whether it closes or stays open."

And if Chen had his own way? "I like Chinese tea," he said. "Coffee makes me feel uncomfortable."

Copyright 2000 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Starbucks faces eviction from the Forbidden City

A web campaign has caused the guardians of the Forbidden City to consider relocating Starbucks outside its walls. Photograph:
Stephen Shaver/EPA

One of the most incongruous sights of the globalised age - the Starbucks coffee shop inside Beijing's Forbidden City - could
soon be a thing of the past after a furious online campaign for it to be relocated outside the palace's 600-year-old walls.
In response to this latest demonstration of “netizen” power in China, the guardians of the ancient site have announced
plans to review the presence of the Seattle-based coffee chain. A decision on its future will be made within six
months, the local media reported today.

Along with Kentucky Fried Chicken and McDonald's, Xingbake - the Mandarin name for Starbucks - are immensely
popular in China. But the outlet inside the palace and close to the Hall of Preserving Harmony has stirred up
controversy since its opened in 2000.

Located along ancient paths that were for centuries off limits to anyone but emperors, concubines, eunuchs and court
guards, the coffee shop has drawn amazed stares and comments from many of the 1.6 million foreign tourists who
visit the World Heritage Site each year.

Despite lowering its profile with the removal of its trademark signboards, opposition has never been as focused as
this week. The trigger was a blog entry posted on Monday by Rui Chenggang, a TV anchorman, who called for a web
campaign against the outlet that, he wrote in his blog, "tramples over over Chinese culture".

According to local media, half a million people have signed his online petition and dozens of newspapers have
carried prominent stories about the controversy. "The Starbucks was put here six years ago, but back then, we didn't
have blogs. This campaign is living proof of the power of the web", said Rui. "The Forbidden City is a symbol of
China's cultural heritage. Starbucks in a symbol of lower middle class culture in the west. We need to embrace the
world, but we also need to preserve our cultural identity. There is a fine line between globalisation and
contamination."

The palace museum - which runs the site - have ignored previous opinion polls, which suggest 70% of people dislike
having a Starbucks in such a place. But the authorities now appear to be taking note. "The museum is working with
Starbucks to find a solution by this June in response to the protests," Xinhua news agency quoted museum spokesman
Feng Nai'en as saying. "Whether or not Starbucks remains depends on the entire design plan that will be released in
the first half of the year."

The US firm said it has no plans to relocate. "Starbucks appreciates the deep history and culture of the Forbidden City
and has operated in a respectful manner that fits within the environment," Eden Woon, vice-president for greater
China, told Reuters. "We have provided a welcome place of rest for thousands of tourists, both Chinese and foreign,
for more than six years. We are honoured to have the opportunity, under an agreement with the Forbidden City, to
enhance visitors' museum experience."

Starbucks are not the only western firm under pressure to leave China's heritage heartland. Mr Rui is already
considering his next target: American Express sponsorship signs.

"I really loathe them. The introduction to every site says, 'Made possible by American Express'. It is as if the Mona
Lisa had a label saying, 'Made possible by the People's Bank of China',” Mr Rui said. "But please don't interpret this
as an act of nationalism. It is just about we Chinese people respecting ourselves. I actually like drinking Starbucks
coffee. I am just against having one in the Forbidden City."

Starbucks in the Forbidden City: some Chinese views

Posted by Jeremy Goldkorn on Friday, January 19, 2007 at 8:05 PM

Rui Chenggang

The Starbucks coffeeshop in the Forbidden City might be forced to leave after an online campaign against it started by CCTV
anchor Rui Chenggang (芮成钢) on his blogs on Sina and CCTV.com. Jonathan Watts' article in The Guardian is the best
English language roundup of the affair. Excerpt:

Starbucks faces eviction from the Forbidden City

According to local media, half a million people have signed [Rui's] online petition and dozens of newspapers have carried
prominent stories about the controversy. "The Starbucks was put here six years ago, but back then, we didn't have blogs.
This campaign is living proof of the power of the web", said Rui. "The Forbidden City is a symbol of China's cultural heritage.
Starbucks in a symbol of lower middle class culture in the west. We need to embrace the world, but we also need to
preserve our cultural identity. There is a fine line between globalisation and contamination."...
 ... Mr Rui said ... "But please don't interpret this as an act of nationalism. It is just about we Chinese people respecting
ourselves. I actually like drinking Starbucks coffee. I am just against having one in the Forbidden City."

Danwei contributor Banyue talked to a bunch of Chinese people in their 20s, and asked them what they thought about
Starbucks in the Forbidden City. Below are some of the responses:

A Xing, 25, who works in a trading company said that if there were other shops or bars in Forbidden City, it would be OK.
But he thinks Starbucks should not be there if it is the only store of its kind.

Yang Zhen, 24, a postgraduate student doesn't really like it but accepts it as a fact, saying "They are strong culture, and
things like this will happen more and more."

Yu Tian, 24, a policeman, said "Getting hell out of the Forbidden City is right thing for them to do." (滚出去是最好的选择)

Flypig, 24, media person and Antiwave podcaster, said: "Sounds good, it must be cool sitting there for coffee and chatting."

Wang Xuhui, 24, a PhD student, says that having a Starbucks in the Forbidden City isn't the best choice from a commercial
view (商业上不是最优选择), and that perhaps a tea house would be more harmonious.

Views about the affair on the Chinese Internet are very diverse. For more opinions, see this Netease Chinese thread about it
, including this one: "So what are you going to do about it! This is the age of money can buy anything."

UPDATE: Geoffrey A. Fowler's article in The Wall Street Journal (available without subscription here) makes it very much a
story about blogging and is titled "How blogging can galvanize China".

UPDATE 2:Rebecca MacKinnon comments:

[The Wall Street Journal article] quotes Rui as saying: "Blogging is giving ordinary grass-roots Chinese people a chance to
express themselves."

Let's keep a few things in perspective. Rui is no "ordinary grass-roots Chinese person." I first met him not in Beijing but in
Davos, Switzerland at the World Economic Forum. Unlike most "grass-roots" people he gets invited to speak at international
meetings where he rubs shoulders with CEO's. As a very smart, sophisticated, and globally minded guy, Rui can talk to
powerful people in their own language and they bother to answer his e-mails.

Rui is one of several relatively young and increasingly influential Chinese journalists who write popular blogs - and whose
popularity and influence has increased thanks to their blogs...

His Starbucks blog post got the attention it did because of his position, because it contained original information about a
direct conversation with a global CEO, and because the editors of Sina.com chose to highlight that blog post prominently on
their front page. My friend Roland Soong says he told a journalist who called him for comment about the story that the
power in this situation lies as much with anonymous editors at Sina.com who giveth influence and taketh away. (The
journalist did not end up quoting Roland on this point.)

She also notes that Rui is not himself a crazy nationalist, even though many of the people commenting on his anti-
Starbucks campaign are. As evidence of this, refer to Roland Soong's translation of Rui's opinion piece