It goes deeper than that-- The physical territory, the ruling government, and the Han ethnic group (including "overseas Chinese") are considered equivalent. Kind of like a giant family where blood relations are mixed up with authority, history etc.

So, Han people are a political tool to use in colonization ("Hanification" currently going on in Tibet and Xinjiang) and also an asset to be maintained through what westerners might call eugenics.

It's more deliberate than "racism," more like "American exceptionalism." It's interesting idea, but it seems scary to westerners and it feels a little bit oppressive to be an Overseas Chinese