Starbucks has completed its previously announced joint venture with Boyu Capital, advancing its long-term growth strategy in China.

Starbucks Coffee Company has entered an agreement with alternative investment firm Boyu Capital to form a joint venture that will operate the company’s retail business in China.

Private equity firm Boyu Capital has reportedly emerged as the leading contender to acquire a controlling stake in Starbucks’ China business, according to a Bloomberg report citing people familiar with the matter.