People need to let go of the idea that racism is an exclusively conscious, overt, explicit, or intentional act. Living in a white supremacist culture, you absolutely must accept the possibility that you have white supremacist tendencies without intending or even realizing it. Unconscious acceptance is one of the things that makes these things systemic. Additionally, thinking you are immune from such tendencies because you try harder to stay away from them or because you're on the "good" side reinforces this. The same goes for other structural oppression like sexism and homo- and transphobia.
This type of party is racist, without question. It's not completely dissimilar to black face. It's like luaus and island parties. It's like dressing up as an American Indian for Halloween. It's like believing in the idea of the model minority. And it doesn't matter if you are from the culture and don't feel offended. People can and generally are involved in their own oppression. That isn't to say you are culpable or at fault for being oppressed. But you can absolutely act in a matter that reinforces it. Again, it's systemic. Meaning each one of us is ultimately a part of it.
Now, whether or not that sort of racism offends you is a different matter. And I feel like everyone saying this isn't racist is really saying that. Whether or not it's okay is a harder thing to convince people of, and I'm not about to pretend I can tell people what/why/how to be offended. Am I personally offended? Not necessarily. My roommate is Mexican and when she laughs at or has fun with certain stereotypes, I absolutely do follow along. So don't think I'm saying I'm not guilty of this shit, too. I just think it's important to accept at the very least that it can be problematic rather than thinking outright that you are completely innocent.
