☕️ Good morning, friends,

We at Asiabits are all staunch NON-Starbucks drinkers.
There are simply too many good alternatives in Shanghai, the city with the most cafés in the world. (Who would have thought that ten years ago?)

But business is booming even without us. More on that in the Top Bit. 👇🏻

Also in this edition:

• AstraZeneca goes all-in: $15 billion in China by 2030—while others are retreating.

• Gold bubble burst: JWR collapse leaves retail investors stranded with $1.4 billion; police are moving in.

• Japan’s AI comeback: Sakana AI bets on swarm-intelligence mini-models instead of tech giants.

Enjoy the read! 📰

👉🏻 P.S. Without local partners like Boyu, nothing works in China. We help you find the right ones—get in touch!

Asian markets trade higher after the Fed pause, with the US central bank leaving rates unchanged as expected. Focus is shifting back to earnings and AI narratives, while a weaker dollar supports capital inflows into Asia.

TOP BIT

☕ Starbucks China Comeback: Double-digit growth following billion-dollar deal

The coffee giant is back on the offensive: Propelled by the sale of a majority stake to Boyu Capital, Starbucks China increased its Q1 revenue by 11% to $823.4 million.

Details

Comparable store sales in China jumped by 7%. This increase was driven by 5% transaction growth and a 2% increase in the average ticket.

Also: By the end of 2025, Starbucks hit the milestone of 8,011 stores in China.

The 4-Billion-Dollar Deal

Starbucks is currently finalizing the sale of a 60% stake in its China division to private equity firm Boyu Capital.

The partnership's long-term goal is ambitious: Nearly half of all new stores outside North America are slated to open in China in 2026.

Good to know: Who is Boyu Capital?

Founded in 2011, the PE firm counts Alvin Jiang, grandson of former President Jiang Zemin, among its founders.

According to CFO Cathy Smith, the partnership is expected to enable an operating margin of over 20% in the international business.

The competition is not resting: Despite this success, pressure remains massive.

Local heavyweight Luckin Coffee now operates over 29,000 stores and generates approximately $2.2 billion in quarterly revenue—significantly more than Starbucks China.

Starbucks is therefore increasingly positioning itself as the "premium choice" against its low-cost competitors.

📊 All details & data: Retailnews Asia, Yicai Global

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NUMBER OF THE DAY

That’s how many Vietnamese internet users are active on Facebook, making the country one of Asia’s hottest social media markets.

📱 Chat turns into the storefront: 89% of Vietnamese online consumers message businesses directly at least once a week.

What this means in practice: The traditional customer journey is breaking down. Customers discover products in videos, get advice from AI, and buy directly in the chat window — all without ever switching platforms.

MARKET BIT

AstraZeneca doubles down on China with $15bn plan

AstraZeneca plans to invest around USD 15 billion in China by 2030 — a clear signal of a reset in UK–China economic relations.

🤝 Announced during UK Prime Minister Keir Starmer’s visit to Beijing, the commitment spans manufacturing, research and development, and new capacity across the pharmaceutical value chain.

The details

Strategic focus: AstraZeneca is expanding cell therapies, radioconjugates, and innovative drug platforms in China. The group aims to become the first global pharma company to establish fully integrated cell therapy capabilities locally.

Industrial footprint: Production sites in Wuxi, Taizhou, Qingdao, and Beijing will be expanded. These facilities serve not only China but around 70 international markets.

China as a core market: China is already AstraZeneca’s second-largest market after the US, accounting for roughly 12% of group revenue. Headcount in the country is set to rise to more than 20,000.

Context

While some Western pharma companies are scaling back amid pricing pressure and uncertainty, AstraZeneca is doubling down. The bet: China is not just a sales market, but an increasingly important source of new drug candidates.

Geopolitical background: The deal comes as London seeks greater economic autonomy between Washington and Beijing. Chinese President Xi Jinping described the move as opening a “new chapter” in bilateral relations.

👉 Full story: SCMP, AstraZeneca, The Guardian

STARTUP OF THE WEEK

🇯🇵 Sakana AI

🤖 Japan’s bold AI bet

Tokyo-based Sakana AI feels like Japan quietly re-entering the global AI race on its own terms. Founded by former Google Brain researchers David Ha and Llion Jones, the startup is building a new kind of AI lab far from Silicon Valley hype.

⚠️ The problem: Today’s AI world is dominated by massive, energy-hungry models controlled by a few US players, leaving little room for local nuance or efficiency.

💡 The solution: Sakana AI takes inspiration from nature. Instead of one giant model, it develops swarms of smaller, specialised AIs that work together — more flexible, more efficient, and easier to adapt to real-world use.

🔜 Traction & ambition: Backed by major Japanese corporates and global investors, Sakana AI aims to help Japan build a homegrown AI ecosystem for research and enterprise.

ASIABITS CONNECT

How three people pull off what others need ten for.

If you’ve seen our podcast, you were probably just as surprised as we were by the insane production quality. That’s the work of our Philippine editor, Ralph.

👉 What we’ve learned: The best talent today can be found anywhere. Especially in Asia.

Asiabits connects you with hand-picked talent from across Asia — editors, designers, developers, VAs. Personally vetted. Ready to deploy.

→ Inquire now: [email protected]

HIGHLIGHTS 

🇻🇳 Vietnam becomes the EU’s first strategic partner in ASEAN: After 35 years of diplomatic relations, President Luong Cuong and European Council President Antonio Costa elevated ties to the highest partnership level. Vietnam is now the first ASEAN country with this status and is set to act as a bridge between the two regional blocs. Focus on: digitalisation, green transformation and maritime security.

🇨🇳 China’s gold bubble bursts: Trading platform JWR has collapsed, leaving tens of thousands of retail investors with losses exceeding 10 billion yuan (US$1.4 billion). Hundreds of investors gathered outside the company’s offices in Shenzhen over the weekend demanding their money back, prompting police intervention. As prices rose and investors rushed to cash out, liquidity quickly dried up.

🛩️ AirAsia orders 100 Airbus A220 jets: The Southeast Asian low-cost carrier is close to placing the largest single A220 order ever, worth several billion dollars. The deal could be expanded to 150 aircraft and is expected to be announced this week. The smaller A220s, with 100–160 seats, will allow AirAsia to serve smaller airports and lower-demand routes as part of its expansion strategy.

🤖 China’s robot boom: Morgan Stanley expects humanoid robot sales to jump 133% to 28,000 units this year, double earlier forecasts. Material costs are projected to fall 16% in 2025, potentially reducing robot prices from US$50,000 to US$21,000 by 2050. By 2036, the bank estimates 25.4 million humanoid robots will be in use, accounting for 2% of the global robotics market.

BEHIND THE BITS

While we spend much of our time online, every now and then we do venture out into the real world. 🍚

We certainly appreciate all your LinkedIn requests, but nothing beats a real-life encounter.

We catch up with friends at restaurants and, once a month, we invite 10 to 15 people to our home in Shanghai for a private networking dinner.

Great food, engaging conversation, and genuine human imperfectoin—which feels especially refreshing in the age of AI.

Have a great weekend!

MORE ASIABITS

• All the latest AI trends from Asia — every Wednesday, exclusively with us.

• The Asiabits Podcast on YouTube. 

• The Asiabits Podcast on Spotify. 

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