US and Chinese Fast-Food Chains Expand Into Each Other's Markets

American and Chinese fast-food chains are rapidly scaling operations in each other's domestic markets. McDonald's is targeting 10,000 total locations in China by 2028, including 1,000 new restaurants this year. Other U.S. brands, including KFC and Wendy's, are also increasing their presence; KFC has already established China as its largest market with approximately 13,000 restaurants.

Simultaneously, Chinese brands such as Luckin Coffee, Mixue, Heytea, and Wallace are entering the U.S. market. Luckin Coffee has opened 20 stores in New York, while the chain Blood sausage opened its first three U.S. locations in December and plans two dozen more. These Chinese firms often compete on lower price points and leverage social media trends like "Chinamaxxing," whereas American brands typically maintain a premium image in China.

This bilateral expansion occurs amid significant political friction regarding tariffs and technology. While U.S. chains use local partners and tailored menus to mitigate risk in China, Chinese firms face potential U.S. scrutiny over customer data collection. This commercial trend coincides with a scheduled state dinner on Thursday, September 24, where President Donald Trump will host President Xi Jinping.