Do you actually believe that the Chinese government would find it acceptable if U.S. scientists working in Chinese labs hid their ties with the U.S. government?
Calling it "racist" is baseless, nonintellectual deflection, as is "well dictatorships do it, so we shouldn't!". Dictatorships also collect taxes and fund their military, should we stop doing those things too?
If you're not part of the 50 cent army you certainly are taking pains to sound like it, because your arguments have ~50 cents of effort behind them.
The fact that China is a dictatorship does not invalidate this policy. You seem to want it both ways: China is an innocent player that is being unfairly profiled when it suits you, and China is an evil dictatorship with bad policies when it doesn't.
Since we are talking about China, they have been launching programs that "recruits" foreign talents or foreign-trained Chinese talents to participate in technological development in China. However, participant of the program has been reported to partake in intellectual theft, especially sensitive/proprietary technologies [1].
I am giving NIH the benefit of the doubt here since IP theft has been a real problem for the US, especially with technology transfer to China. I don't think this is racist at all because it's a matter of curbing IP thefts and taking a precaution on growing aggression of a country that happens to be 91.6% ethnically Han Chinese people[2].
Source: [1] https://en.wikipedia.org/wiki/Thousand_Talents_Plan [2] https://en.wikipedia.org/wiki/Demographics_of_China
You're literally doing that but for the US. The families of countless people killed by the US in its illegal wars over just the past several decades would disagree with you, if they haven't been wiped out themselves. Same goes for the countless people that starved to death from US sanctions because their government refused to bow to the US empire.
What does this mean exactly? It can't be literal, since I don't think the Chinese have any blame for Americans eating too many triple-cheeseburgers and having heart attacks (heart disease is the leading cause of death for Americans, but I'm not going to stop eating those delicious cheeseburgers.)
Based on this, many foreign researchers that cooperates with the United Stated, and there are several thousands of them, should be severely punished in his/her country of origin. Most researchers in foreign countries cooperate with American research organizations that transfer technology to US the industry. Just for an example, my home country exchanges information about the Amazon with American institutions, and much of that information is passed on to pharmaceutical companies operating around the world. This is a despicable action that targets China in a way that is racist and hypocrite.