I wasn't offended by the language at all. I was offended by this notion that because something is produced in china, it's of poor quality. I had a massive argument with someone about this on another message board, and they had no good reason for saying it.
I know we should really be talking about this 'cos someone's going to get offended etc but.....
Chinese people are not a seperate race, they are a nationality. If you group all chinese people together, in a negative way, it's not racist, it's just anti-chinese, and bigotted etc.
Maybe that's pointless, but I don't think many chinese people are going to take an abbreviation of their nationality as a racist slur. Obviously, i'm not chinese, and so I wouldn't know, but with respect to the actual word, which is causing offence, it has much more in common with "brit" than that other racist slur you mentioned.