Today's kids are different. When I was a kid, Chinese was a slur and other kids called me that to be mean and hurtful. Today, kids call my daughter a Chinese girl just because they don't know her name, it's just a matter of denotation, not judgement. They say, "The Chinese girl is here to play" just like they would say, "The girl in a red dress is here to play."
Will kids always be so accepting of the differently colored? Will they turn malevolent and hostile in a couple of years? When do friendly prejudice-free kids turn into bigoted adults?