Every time I hear “America is racist” I remind people the world is far more racist - see story above. This is common practice everywhere. Europe, Asia, etc. they discriminate for different reasons and in different ways, but they all do it and it’s almost always overt.
That’s the culture in the region, imo it’s not “wrong”. People self-select and who am I to discriminate against their culture? They do it for their reasons.
I personally find it reprehensible, but that’s my cultural values. I’m proud of where I’m from (US), where we have spent generations working to mitigate any form of discrimination based on race, gender or creed. It’s not perfect, but we strive in the right direction.