As I said, I don't see any racism here. Being suspicious towards people of Chinese origin, culture, language, looks etc. is clearly racist. Being suspicious to the citizens of People's Republic of China is only political.
It's probably too much to put ordinary people under suspicion right away, but for for legal bodies it's totally reasonable if you ask me. To assume that you can run business in an authoritarian country and be totally independent from the government is plainly naive. Even if you are not formally a member of the ruling party.
Being negative about people simply based on their nationality is racist.
Those attempts at denying that because a country or a people are not "a race" is ludicrous.
If I say that I don't like Mexicans that's racist, for example. If I try to deny it because that's not "a race" I will only ridiculise myself even more.
Or it is not racists when governments do it, but is racists when individuals/companies do it?