This election video generated an interesting discussion at WSO.
I think we actually are disagreeing on the distinction between racism and xenophobia. The ad is based in xenophobia (and nationalism), and it is VERY xenophobic, and of course a component of that is racism, but on the whole, that is not a defining feature of the ad (ie they have kept the racism component small). I think you are claiming that the ad is outrageously racist whereas I would call it outrageously xenophobic. I think I would be comfortable arguing that Avatar is more racist than this clip. They are not saying “reduce the debt because the Chinese aren’t Caucasian and we don’t want to be ruled by an inferior race”; they are saying “reduce the debt because the Chinese are Chinese and we don’t want to be ruled by outsiders and an inferior country”.
You write that as if it is obvious that xenophobia is a bad thing . . .