Business Culture of U.S vs China

Market Cultural Report
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Introduction and Rationale
The economy of the United States offers excellent opportunities, with relatively low cost of living and high wages. The American focus on efficiency and meritocracy has increased innovation to exciting heights, yet expatriates working in the country find themselves steering a market culture full of contradictions (Basu & Foley, 2013). Many people believe Americans work harder than most developed countries because the country has a favorable atmosphere for conducting business. This assertion is not far from the truth because the U.S. is consistently ranked the best globally for its overall competitiveness and ease of doing business (Campbell & Kean, 2016). Supported by a conducive regulatory environment for starting and running a business, U.S. business culture encourages free enterprise and competition.
The U.S., with its developed market, remarkable GDP, high literacy rate, low taxes, transparent legal system, outstanding infrastructure, and best investment climate, prompted me to choose it. Studies show that the U.S. has one of the best investment climates in the world (Basu & Foley, 2013). As an industrialized country, it offers a welfare environment and attracts investors with its stable management. With a total population of over 328 million, it has a GDP of around $ 22.73 trillion as of 2021 (Bureau of Economic Analysis, 2021).
Moreover, the U.S. has a higher literacy rate of 99% than that of other countries like China, with about 91% according to World Fact book Report. It means that the U.S. labor market is full of competent employees who enable business growth and expansion. These conditions show that the U.S. is a promising market for business growth and expansion.
Cultural Analysis of U.S
The U.S Census Bureau report shows that the U.S is the third-largest country in the world, with a population of over 328 million. This population consists of ethnic groups like white or European American, Black or African American, American Indian/Alaska Native, Asian American, and Native Hawaiian/Pacific Islander (Zimmermann, 2017). White Americans constitute the largest ethnic group in the U.S. They make about 72% of the country’s population (Ali, 2020). The rest of the ethnic groups make up about 28% of the national population (Ali, 2020).
The U.S. is also a country with diverse religions such as Christianity, Islam, Judaism, Hinduism, Buddhism, and unaffiliated religions like atheists or agnostics (Zimmermann, 2017). Of these religions, Christians are the majority, according to data collected by the Pew Research Center as cited by (Zimmermann 2017). This data shows that more than71% of Americans identify themselves as Christians (Zimmermann, 2017). The study also found that close to 23% of the population do not affiliate with any religion, and approximately 6% consist of non-Christians (Zimmermann, 2017).
In addition to religion, American culture is determined by clothing style. However, clothing styles vary by region, class, occupation, and climate. Jeans, sneakers, cowboy hats, baseball caps, and boots are some clothing items associated with Americans (Zimmermann, 2017). Some famous American brands include Calvin Klein, Ralph Lauren, and Michael Kors.
Food also defines the U.S. culture. Foods such as hamburgers, hotdogs, macaroni, potato chips, meatloaf, and cheese are commonly associated with American culture (Campbell & Kean, 2016). There are also cooking styles and types of foods specific to a region. Southern-style cooking is often called ‘American comfort food’ and includes fried chicken, black-eyed peas, collard greens, and cornbread (Zimmermann, 2017). Tex-Mex, popular in Texas and Southwest, is a combination of Mexican and Spanish cooking styles and includes chili and burritos (Campbell & Kean, 2016).
Business Culture of U.S versus China
Individualism versus Collectivism
Societies that demonstrate individualism expects their members and their families to develop self-interest. Those that show more collectivism give their members the urge to take care of each other in exchange for unquestionable loyalty (Nguyen, Le, & Boles, 2010). American business culture is individualistic, with employees being motivated by their careers (Youyan, 2010). For that reason, everyone values their personal achievement above collective accomplishment. There is no solid cultural commitment or obligation to age or business hierarchies. Society is loosely-knit, with members looking after themselves and their families, but not the community at large (Chen, 2013). Individuals are comfortable doing business with people they do not know and interacting with them.
This individualism is not the case in China because Chinese value their societal and national identity more than anything else (Nguyen, Le, & Boles, 2010). As noted, Americans have pride in personal accomplishments and successes. To them, it is okay to do so. However, the Chinese perceive this individualistic culture as highly selfish because they associate their achievements with the company, nation, or community (Chen, 2013). Suppose one tries to focus too much on personal accomplishments in front of a Chinese businessman to impress them. In that case, they might have the opposite effect because China has a collective business culture (Yeh & De Cock, 2019).
Communication Styles
           Americans are straightforward in their communication styles. They tend to be persuasive, blunt, and highly aggressive when pursuing a business deal (Youyan, 2010). They always want to stay ahead and win in every negotiation. Also, it is not easy for Americans to back down from an argument. They do not fear disagreeing and will easily mention things they do not like. Besides, Americans are uncomfortable with silence and will always look for ways to fill it (Ferraro, 2021). They also expect people to attend meetings and speak. If a person remains silent, they assume that they have nothing meaningful to say or did not prepare for the meeting. This is part of the American business culture, and it works well in the country. 
           Unlike Americans, the Chinese are often polite and respectful to their business deals (Yeh & De Cock, 2019). They choose to negotiate with humility and respect. If one shows them this politeness and respect, they find it easier to negotiate to a middle ground to the satisfaction of everyone (Shi, 2020). A Chinese professional will ensure by all means that their politeness remain during a business negotiation. They can even lie to avoid conflicts (Yeh & De Cock, 2019). 
Contract versus Relationship
American business culture emphasizes a legal system. American business professionals tend to rely more on the negotiation and law of contracts instead of facilitating a long-term personal relationship with their clients and customers (Zho & Yu, 2019). They also do not mix personal life with professional life during work timings. They like keeping the two separate and only socialize outside office hours. As such, businesses focus on creating detailed rules. The relationship between an employer and an employee is a rule, not personal friendship (Campbell & Kean, 2016). In contrast, the Chinese business culture pays attention to building social networks and relationships with their employees and business clients (Kaynak & Leung, 2013). They call this ‘guanxi’ in China. To them, relationship during the business is not a big deal. They trust business relationships with their clients and follow their instincts to establish family relationships with them. In China, it is possible to do make a deal by handshake without signing a contract.
Hierarchal Composition 
           The Hierarchal composition and role play out differently in American and Chinese cultures. In the U.S, subordinates do not hesitate to challenge their managers in the workplace since the American business culture seems to accept this transgression (Youyan, 2010). Americans see it as a positive interaction for the organization that fosters openness and innovation. According to Chunlin (2010), the contemporary American workplace has a collaborative atmosphere based on the premise of ‘‘jus...