Ethnocentricity raises it's ugly head.
Whilst I disagree with these ads (both versions, as they are trying to be controversial), the fact is that "racism" is thought of differently in other cultures.
"
Article 14 of the Constitution of Japan states that all citizens are equal under the law, and they cannot be discriminated against politically, economically, or socially on the basis of race, belief, sex, or social or other background. However, this clause does not apply to discrimination committed by private individuals or establishments or legal discrimination based on citizenship. Hate speech is not a criminal offense, but insulting, such as calling someone "fool!", is a minor civil offense resulting in monetary compensation (which is often lower than the cost of going through the judicial process). Japan does not have human rights legislation which enforces or penalises discriminatory activities committed by citizens, businesses, or non-governmental organisations. The country does not have specific hate crime laws. Racism and hate-motivated offenses that include assault, vandalism, and robbery are prosecuted as regular crimes."
Wikipedia -
http://en.wikipedia.org/wiki/Racism_in_Japan
So, are we being racist by -
a) imposing our western liberal viewpoint upon another culture
b) not standing up to what is viewed as racist by our culture
damned if you do, and damned if you don't.
ps - before I get flamed, I am vehemently anti-racist, and in fact anti-any form of discrimination; it is "what is racism/discrimination" that is the moot point (which, by the way, I don't know the answer to, just what my guidelines are - treat everyone as you would like to be treated).