TAIPEI — Luckin Coffee’s long-awaited entry into Taiwan has hit another regulatory hurdle, with Taipei authorities demanding that the Chinese coffee giant go through the island’s formal mainland-Chinese investment review process before it can open stores.
The latest move comes after photos circulated online showing boxes bearing the Luckin Coffee logo apparently being delivered in Taipei, fueling speculation that the company was preparing to open its first Taiwan location.
Taiwan’s Ministry of Economic Affairs Investment Commission said on Sept. 7 that it had sent a letter to the law firm representing Taiwan-based Shun Yu, asking that the proposed investment be handled through the proper mainland Chinese investment channel. The ministry said it has not received an approved investment application from Luckin Coffee.
That effectively puts the brakes on expectations that Luckin could simply begin operating through a local Taiwanese partner.
The issue is bigger than coffee
Luckin’s planned Taiwan expansion has become a test of how Taipei handles Chinese consumer brands seeking access to the island through local intermediaries.
The company had reportedly explored entering Taiwan through a Taiwanese business, Shun Yu, rather than directly applying as a mainland Chinese investor. Taiwan officials have now indicated that the structure should instead be subjected to the mainland-investment review process.
Economics Minister Kung Ming-hsin said Sept. 10 that restaurant businesses are not among the categories completely prohibited to mainland Chinese investment. However, he said using an agency structure could raise questions about whether the normal review process was being avoided, making a straightforward application preferable.
That distinction is critical.
Taiwan is not saying that Luckin Coffee is banned. It is saying that the company’s proposed route into the market needs to be reviewed properly.
Why Taiwan is paying close attention
The scrutiny comes as Taiwan has significantly increased its sensitivity toward Chinese investment, ownership structures, technology transfers and potential influence.
Taiwan has also been dealing with growing Chinese cyber and security pressure. Reuters reported last month that Taiwanese authorities detected AI-assisted cyberattacks against government agencies, while Taipei has repeatedly warned about China’s broader use of cyber operations and other forms of “hybrid warfare.”
That wider security environment helps explain why the ownership and funding structure of a Chinese company entering Taiwan can attract greater attention—even when the business itself is a consumer brand.
Still, there is currently no confirmed evidence that Taiwan has accused Luckin of spying, collecting intelligence or posing an established national-security threat. The present dispute is primarily about investment approval and whether the company’s proposed entry structure complies with Taiwan’s rules.
Luckin’s Taiwan plan has been stuck for months
This is not the first time Luckin’s Taiwan expansion has run into regulatory questions.
The company was already rumored to be preparing a Taipei launch late last year. Taiwan’s Economic Ministry said at the time that it had not approved Luckin’s investment and that Chinese restaurant businesses must comply with the applicable investment rules.
The latest controversy intensified after social-media users reported seeing Luckin-branded coffee boxes near a potential store site around Nanjing Fuxing in Taipei, reportedly close to an existing Starbucks location.
Taiwan media reported that the boxes included Luckin branding and coffee-bean information, adding fuel to speculation that the store could be close to opening. But the government response made clear that physical preparations do not equal regulatory approval.
What happens if Luckin opens without approval?
Taiwan’s authorities have warned that companies cannot simply use a local intermediary to sidestep investment restrictions.
Local reporting said that if an investment were found to have entered Taiwan without the required approval—or if nominees were used to circumvent the review system—the authorities could impose sanctions and potentially revoke the relevant registration.
That makes the current situation especially important for Luckin.
The company may have the consumer appeal, financial resources and international expansion ambitions to challenge established coffee chains, but its Taiwan launch depends first on clearing the regulatory gate.
Luckin is no ordinary coffee chain
Luckin’s rapid global comeback has made the Taiwan dispute even more closely watched.
The Chinese company was rocked by a major accounting scandal in 2020 after admitting that sales had been fabricated. It was subsequently delisted from Nasdaq and later reached a settlement with U.S. investors.
Despite that history, Luckin has staged a remarkable recovery. The Financial Times recently reported that the company has grown to more than 34,000 stores, overtaking Starbucks in China and expanding internationally.
Luckin’s resurgence has included expansion into the United States and other overseas markets. The company has also continued building its broader coffee portfolio, including its 2026 acquisition of Nestlé’s Blue Bottle coffee-shop business, according to recent reports.
That global expansion means Taiwan is not simply looking at another foreign coffee franchise.
It is dealing with one of China’s largest and fastest-growing consumer brands.
Beijing weighs in
The controversy has also drawn a response from China’s Taiwan Affairs Office.
On Sept. 9, spokesperson Chen Binhua said Beijing supports two-way investment and cooperation between businesses on both sides of the Taiwan Strait. His comments came after Taiwan’s Investment Commission reiterated that Luckin should use the mainland-investment application route.
The exchange highlights how a seemingly ordinary retail expansion has quickly become entangled with the broader political and economic relationship between Taipei and Beijing.
The real question now
For coffee consumers, the issue is simple: When will Luckin actually open?
For Taiwan’s regulators, the question is more complicated: Who is really investing, where is the money coming from, who controls the business, and is the proposed structure consistent with Taiwan’s mainland-investment rules?
Those questions have to be answered before the coffee chain can move from speculation to a legally approved Taiwan launch.
For now, photos of Luckin boxes in Taipei may suggest that preparations are underway—but they do not mean Luckin Coffee has received approval to operate in Taiwan.
The next move belongs to Luckin and its proposed Taiwanese partner: submit the required application, undergo the review and convince Taipei that the company’s entry structure complies with Taiwan’s rules.
Until that happens, the highly anticipated Luckin Coffee Taiwan debut remains stuck behind a regulatory gate.
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