US and Chinese fast-food chains race to expand across each other's markets

American fast-food giants are accelerating expansion in China, with McDonald’s targeting 1,000 new restaurants this year and a total of 10,000 by 2028, Wendy’s eyeing 1,000 outlets over ten years, and Burger King planning to triple its Chinese sites to 4,000 by 2035. The growth relies on Chinese joint-venture partners and localized menus that blend Western staples with items like egg tarts and congee. Meanwhile, Chinese chains are testing the US market; Mixue opened three stores in December and plans dozens more, while Heytea, Luckin Coffee and Wallace have already launched dozens of locations, often adapting recipes for American tastes.

Market analysts describe the surge as “gastrodiplomacy,” a consumer-led exchange that enhances China’s soft power and offers US firms a lucrative audience of over a billion people. Price competition is fierce, with Chinese brands often undercutting US rivals, raising concerns about tariffs and data-privacy scrutiny. The trend underscores how food brands are becoming informal ambassadors amid broader US-China tensions.