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The news: Starbucks is lowering prices in China for some drinks as the country’s relentless price wars force the struggling coffee chain to shift gears. Our take: Starbucks’ pricing actions are necessary to keep it competitive in a challenging market. But it is increasingly struggling to keep up with the likes of Luckin Coffee and Cotti, which are not only considerably cheaper but also better able to meet Chinese consumers’ rapidly shifting tastes. With conditions in the world’s second-largest economy unlikely to improve this year, Starbucks will have to find a way to become nimbler—and more affordable—to keep within striking distance of its rivals.

The news: China retail sales jumped 6.4% YoY in May, per official data. That outpaced expectations for a 5% increase and marked an acceleration from April’s 5.1% growth. What it means: While the stronger-than-expected retail sales are a promising sign for the country’s beleaguered economy, conditions on the ground remain highly challenging.

DeepSeek, a genAI chatbot that originated from China, astonished the world with its capability to match ChatGPT while costing significantly less to build and using less powerful GPUs. The launch has triggered an industry soul search that could potentially accelerate AI adoption worldwide.

29.5% of consumers say tariff-fueled price hikes would immediately impact their buying habits, and only 2.3% say their buying habits wouldn’t be impacted at all by price, according to a February 2025 Omnisend survey.

Shipments plunged 72% YoY, and Apple and others are scrambling to dodge looming chip tariffs and stabilize shaky supply chains.