I still think the whole concept of free speech is a little sketchy. I do support it, but there must be some limits and boundaries - especially with regards to racism.
And how will you define racism? 
You'd be banning hundreds of slang words and then you'd have the police trying to figure out context when you say "I haven't had food this good in a coon's age!"
Yeah, that's kind of a different topic. I was talking with a friend about this very subject yesterday. I don't want to derail this thread and turn it into a GAF OT topic so I'll give a simple (but a little extreme) example.
Statement that I would not find racist:
"I don't find Asians very attractive. I personally don't find their facial features to be appealing."
Racist:
"Man, chinks are ugly. How can they see through those slits in their faces?"
As for the OP, I didn't find Cafferty's comments to be racist or discriminating. To me, it looks like he just voiced his dislike for the Chinese government (although he could have done it a bit more tastefully). I am not Chinese or Asian though so what would I know?