I am not sure if I understand Dreadnought's point (is he implying Martin Jacques is wrong?) but Gilly's comment about the double standard misses the point completely. It isn't a question of "freedom of speech", or, as in the case of the Muhammed cartoons, "don't print this or we will kill you", as they actually did in the case of Theo Van Gogh. Nobody should deny anyone the right to say pretty much anything they want to, and that, of course, includes the Chinese government. But as I said before, the only reason this is significant is that it was put out by the Chinese government - I do think it is an interesting slip-up on their part, in that it shows a disconnect between perceptions, but it is not otherwise significant. As Gilly points out, somebody noticed it, said 'oh oh', and pulled it. Still, if you have a State controlled media, the government does have to take responsibility for what it presents.
It is certainly true that a degree of racism exists in China and among Chinese people that would not be socially acceptable in the West. On the other hand, the racism is usually of a more theoretical kind - it's not as though the Chinese are going to Africa and enslaving black people, or anything; but we've seen what racism combined with an agressive foreign policy leads to courtesy of the Greater East Asia Co-Prosperity Sphere. In China these days the ignorance is generally (leaving out, for example, imperialism in Tibet, etc.) simply a matter of personal ignorace, and is not directly harming anyone.