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US marketers know the US standard of ethics. However, that standard can lead to ethical conflict when Americans encounter the emerging market giant, China. As smaller US companies enter China, the potential for ethical conflict increases. Reducing that potential requires knowledge. Knowing the nature and history of the two cultures can lead to an understanding of the foundation of their ethical systems. Ethics and the expectations within cultures affect all business transactions. It is vital for Western marketers to understand the expectations of their counterparts around the world. Understanding the cultural bases for ethical behavior in both the USA and China can arm a marketer with knowledge needed to succeed in cross‐cultural business. Implementing that knowledge with a clear series of managerial guidelines can actualize the value of that understanding.