Keith Windschuttle, in this months Quadrant magazine, draws a distinction between Xenophobia and racism. Xenophobia is the fear or dislike of foreigners or strangers; racism is a fear or dislike of people of other races.
He sees xenophobia as natural, racism on the other hand results in people reacting badly, even to people they know, simply because of their race.
By the way, have any of you ever wonderred why there are so many China towns outside of China? Even in other Asian countries?