Political correctness - allowing China to dictate what we (Western nations) do or say.

I think it has to do with the Chinese concept of the century of humiliation. The term is derived from a Chinese word, IIRC, which is part of their reverence or respect ceremony towards the emperor and/or the imperial family, but was picked up by westerners and often used in derogatory ways to say Chinese were, uniformly submissive or passive or whatever.

I don’t think it’s a racist term, but it does have some negative connotations, especially today and especially when used by westerners. My sons partner and his family are from China, and this is how they explain it to me anyway when it’s come up.