Cup of Coffee Costs $120 Million for Firm Facing China Backlash
- State media accuse chain of supporting Taiwan’s President Tsai
- Coffee vendor issues statement saying it supports ‘one China’
Tsai Ing-wen on Aug. 15
Photographer: Favio Falcon/AFP via Getty Images
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Gourmet Master Co. stock plunged as the cafe operator got caught in crossfire with China over Taiwan President Tsai Ing-wen’s visit to an outlet in the U.S. for a cup of coffee.
The shares slumped 7.5 percent in Taipei trading Thursday, wiping $120 million from its market value, after a newspaper in China published calls to boycott the chain for hosting the Taiwanese leader at a store in Los Angeles. Tsai’s Democratic Progressive Party supports independence for the island, a policy opposed by China.