India, July 2 -- Luckin Coffee, the biggest coffee chain in China, is now formally open in the United States, competing with Starbucks.

Starbucks faces intense competition in China, its second-largest market after the United States, where consumers are becoming more frugal with their spending. Domestic competitors like Luckin Coffee, which draws clients with cashierless locations and cups as cheap as 8.8 to 9.9 yuan ($1.23 to $1.38), pose serious threats to Starbucks.

Currently, Luckin Coffee is flourishing in the United States, launching two stores in Manhattan, New York City.

According to the brand's Instagram page, the company offered complimentary tote bags to the first 100 clients as part of special promotions to commemorate the l...