It's racism. In the West, Sinophobia is an acceptable form of it.
It may (or may not) be being handled as well as any government could, but its not being effectively contained, it has spread around the world, and it is continuing to spread.
> Despite this, Western media is intensifying the panic.
Western media is accurately reporting the facts, and the policy responses. Intense concern is appropriate.
> As a result of it, Chinese people are being discriminated against worldwide.
How? Some places have adopted or are preparing precautions directed at travelers entering from China (which is a different, though overlapping, set from "Chinese people"), but that's a reasonable step given that it is neither contained nor, in the very short term, containable by China, by the facts that the Chinese state has acknowledged (transmissibility during incubation period, number of people who traveled out of the effective area before any containment was in place, etc.)
As far as punitive actions against a country, the world is taking a relatively light approach to China especially when one factors in their treatment of the Uyghurs. They have placed an entire ethnic minority into concentration camps for reprogramming. That's racism.
Do you have any proof of this? All Western media has been able to produce is a few pictures of some buildings which could contain at most a few hundred people.
At least look at the other side's story before you blindly believe everything capitalist media tells you. https://www.youtube.com/watch?v=u4cYE6E27_g