I've had people ask me if "Kiwi" is a racist term too. I've always thought it was such a strange concept that someone might think it's racist.

But then again, I guess it's racist to call French people frogs, so I can understand how someone would come to the conclusion that it's racist to call someone a Kiwi.

Neither 'frog' nor 'kiwi' are racist [1]:

   racism
   1 Prejudice, discrimination, or antagonism directed against
   someone of a different race based on the belief that one's
   own race is superior.

This abuse of the word better stop soon or people will start wearing T-shirts with 'racist and proud of it' in sheer frustration from being called 'racist' at the drop of a hat.

[1] https://en.oxforddictionaries.com/definition/racism

Not to stoke the fires here, but I assume you are referring to the fact that being from France or being from New Zealand does not indicate any particular race, and so the terms (meaning someone from France/NewZealand) can not denote "racism".

However, I think it's generally the case that when people use the term "racist", they mean "derogatory based on the origin of the person", and not necessarily their race. Language is flexible and people use terms in common usage which is does not adhere to prescriptive definitions. I have to admit being quite pedantic myself, but have come to accept looser definitions of words as I get older. As long as I understand what the person is intending to say, I try not to worry about what they actually said. This has helped me communicate with people greatly. YMMV.

The problem is that the 'racist' label is so poisonous in our (western-European, north-American) culture that it is being used to silence others, no matter whether they actually are racist or not. It does not take much to be called 'racist', sometimes drinking a glass of milk is enough [1,2].

[1] https://www.huffingtonpost.com/entry/milk-white-supremacy-ra...

[2] https://www.nytimes.com/2018/10/17/us/white-supremacists-sci...

Frog or Froggy was never racist to me. It might depend on who's saying it and his/her intentions though.