At least they were honest with you, which is better than the "We choose someone more qualified" line. I'd even have gone so far as to thanking the person for being so candid. And it's not just China, but many, many other areas within Asia. Perhaps its more pronounced in China but it's comparable to places like Korea, as well.
I'm as white as sour cream and I feel some bigotry from Chinese people too. If you want to continue staying in China, or Asia for that matter, you'll just have to deal with it. It ain't the free world over here and nobody owes you anything for feeling bad about supposed racism.