Your masterful logician skills appear to have failed to notice that the author being wrong and being racist were unrelated. One can be racist and right, or non-racist and wrong, but in this case the author is wrong about where China is coming from and going to, and then later also keeps flashing his racist colors.
Not all observations are extrapolations from a single observation.
http://en.wikipedia.org/wiki/Ad_hominem http://en.wikipedia.org/wiki/Proof_by_assertion