This just willfully tone deaf as to what was going on and being implied then. The other component of it was this kind of "blame China" attitude he was trying to engender to deflect blame, and that's another reason why the theory never caught on.

(Also to be clear, it's not even that the China stuff made him racist; he clearly established himself as a racist, and then he said that stuff, which I agree wasn't necessarily racist. But of course, he wasn't speaking in a vacuum, he was speaking in the context of himself and his whole presidency, which led everyone to naturally assume the worst of it.)