Starbucks said Monday it is forming a joint venture with Chinese investment firm Boyu Capital to operate Starbucks stores in China .

Under the agreement, Boyu will pay $4 billion to acquire a 60% interest in Starbucks' retail operations in China. Starbucks will retain a 40% interest in the joint venture and will own and license the Starbucks brand.

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Starbucks entered China almost 30 years ago, and has been credited with growing coffee culture in the country. China is Starbucks' second-largest market outside the U.S., with 8,000 locations.

But in recent years, the Seattle coffee giant has struggled in China with cheap, fast-growing Chinese startups like Luckin Coffee.

As a result, Starbucks has been looking for a

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