Racisim exists because there IS a mindset of "we are better than them" and I believe that was the point that Bawang was trying to make.
It is a delusional view, but one that many have.
Just as some people have a delusional view of races, Kung fu people have a delusional view of kung fu and their place in the "MA world".
I also think that, perhaps, bawang was also making a statement about "stupid white people" that do kung fu and become more "chinese" than than the chinese that invented it.
At least I THINK that is what he meant.
Psalms 144:1
Praise be my Lord my Rock,
He trains my hands for war, my fingers for battle !