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As a home grown U.S. company Starbuck's quickly saturated its market, and hence several years ago looked at the global market for growth. One of these global markets is China, the most populous nation and home of the record breaking double digit gross domestic product or GDP rates. However, the Chinese culture is so much different that the US culture, in fact some Chinese observers would say that the two cultures are apposite, hence careful strategic planning enhances Starbuck's success in its global extension in China.
One of the most pressing decision factors for Starbucks in opening a coffee shop in China is that the Chinese are predominantly tea drinkers and are unfamiliar with coffee. Thus one of the strategic choices and entry strategies that Starbucks adopted is to upwardly mobile, predominantly young, and interested in consumer products, especially foreign items that have previously been unavailable who belong to a middle class who have been appearing in coastal areas and China's capital.
The success of Starbucks' venture into the Chinese market is supposedly smashing, but how smashing we don't know as financial data is not available largely due to the role of the Chinese government. That is, Starbucks manages its Chinese operations while the local licensee owns a controlling interest in the coffee company's shares. The fact that there is a licensee is one of the peculiarities of doing business in China. Thus, foreign companies operating in the country have to be flexible and need to understand the special difficulties associated with investment.
Another strategic choice that Starbucks must face is how fast its Chinese expansion should be given that its target market is substantially increasing. This is also a decision that must be made in view of the fact that a majority of Starbucks' target market are averse to dairy products which are main ingredients of the company's products including its bestsellers. With that said, one of the entry strategies is to educate the culture on benefits of drinking coffee and dairy products. Starbucks also focuses on quality and experience rather than price. Customers are not buying a cup of coffee, they are buying an experience. Starbucks aims to be the third place, between home and work, where people gather to engage and connect.
Of course, there are external threats they could face. One such threat is government regulation, such as tariffs and taxes which could range as high as 20 to 60 percent. If the government raises these rates then that would lead to inflated prices which would result in fewer drinkers.
Downsizing in the United States impacts China's global growth in China and elsewhere as this plays part in limiting the amount of revenue which is likely to be generated for the company. Downsizing may also inflict fear on employees in China in that they will always have a worry that they may lose their jobs in cases where the company opts to expand its operations in another global company.

References:
Starbucks Calls China Its Top Growth Focus, Wall Street Journal, New York, N.Y.; February 14, 2006
Starbucks aims for new tier in China Cafes: Financial Times. London: February 14, 2006
The forbidden latte Business.view, Economist.com/ Global Agenda. London: July 17, 2007 p.1. (2009) "Starbucks pushes China sales with local brew"- Starbuck's in China grows while USA downsizes, accessed 11/10/2010, China Daily.
Converting the masses: Starbucks in China http://www.globalpolicy.org/component/content/article/162/27615.html