B. F. Klare, M. J. Burge, J. C. Klontz, R. W. Vorder Bruegge and A. K. Jain, "Face Recognition Performance: Role of Demographic Information," in IEEE Transactions on Information Forensics and Security, vol. 7, no. 6, pp. 1789-1801, Dec. 2012.
It's a bit of a cop-out just to say, "shucks, computers do the darnedest things!" Humans coded, tested, and deployed that service. They let something fall through the cracks, the awful implications of which detract quite a bit from all the good the service might ever accomplish.
My point isn't to excuse it, and indeed I'm not even trying to address the moral dimensions of it. My point is just that if this is a Chinese product developed for use in China, it's entirely possible that it won't work well on non-Asian faces without additional work.