Final answer:
Guanxi is an important element of doing business in China but unimportant in doing business in the United States. The United States operates more on the principles of professionalism and adherence to legal and ethical frameworks.
Step-by-step explanation:
The statement is true. Guanxi is an important element of doing business in China but unimportant in doing business in the United States, as Huawei discovered when it entered the US market.
Guanxi is a Chinese term that refers to interpersonal relationships or connections based on mutual trust, reciprocity, and favors in exchange for future assistance. In China, guanxi plays a crucial role in business, politics, and various other aspects of life, as it helps establish trust and facilitates business transactions.
However, in the United States, business operates more on the principles of professionalism, meritocracy, and adherence to legal and ethical frameworks. While personal connections can still be beneficial in certain contexts, they are generally not as crucial or influential as in China.