Nov 21 Reuters Starbucks reiterated on Thursday it is exploring strategic partnerships for its Chinese operations, after a media report saying the company is considering selling a stake in the business to a local partner.

The Seattlebased company, facing a decline in demand for its beverages in major markets such as the U.S. and China, aims to revamp its U.S. stores and gain a better understanding of its Chinese operations, the firm39;s new CEO Brian Niccol told investors last month

All indications show me the competitive environment is extreme in China… and we need to figure out how we grow in the market … in the meantime, we continue to explore strategic partnerships that could help us grow in the long term, he said on an earnings call on Oct. 31.

Bloomberg reported on Thursday that Starbucks was exploring options for its Chinese operations including the possibility of selling a stake in the business, and it has gauged interest from prospective investors including domestic private equity firms.

Responding to the report, Starbucks said in a statement it was working to find the best path to growth, which includes exploring strategic partnerships.

We are fully committed to our business and partners, and to growing in China, it said, without elaborating.

In China, its secondlargest market, Starbucks has grappled with weak consumer spending and stiff competition from local coffee chains such as Luckin Coffee in a sluggish macroeconomic environment.

Last year,…