New Delhi, Nov. 4 -- The American coffee giant cedes majority control of its most lucrative overseas market as Beijing tightens its grip on Western corporations.

The move, one of the most consequential restructurings of a major Western consumer brand in China in recent years, was framed by Starbucks executives as a way to accelerate growth, expand access to lower-tier cities and improve store economics. Starbucks' own message to partners and its corporate press release spelled out the contours of the arrangement and the company's rationale; the company said the combined proceeds, its retained equity and the present value of future licensing royalties could amount to more than $13 billion.

For investors and strategists the deal is both p...