Businesses compete in a free enterprise system because these systems exist in a capitalist environment, wherein the company with the "best idea" or product makes the sale and thus a profit--thus fostering competition.
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Chinese immigrants were cast as outcasts in Californian society, because of cultural differences - customs, clothing, beliefs, food, language etc -. The response to those differences caused Chinese immigrants to form their own community called Chinatowns.
Nativists thought Chinatowns were dangerous but necessary to help Chinese immigrants to assimilate, they also thought Chinatown was useful because it was used to separate immigrants from other residents.
Samuel Johnson said that quote on April 7, 1775