China is just a very patriotic country, especially because of the past history of the country that just builds a strong sense of patriotism. I don't think it's a problem or racism-- authors are just reflecting the culture of their country.
Think common fantasy novels: how often do you find a diverse cast? For those billions of western stories influenced by European history/culture (and typically the big countries, like Britain, France, Germany, etc., not places like Turkey with different culture than the norm ((partially because half of it is in Asia))), the main cast is always primarily white/caucasian. And this makes sense-- they're set in a place with European culture, and in Europe that's just the general race. Do you call books like these racist because they feature a cast like that?
China is primarily the same, especially because it is just as culturally diverse like Europe, with 56 ethnicity groups, and like others mentioned above, these novels were originally written for a Chinese audience, and this is just generally what the Chinese like to read about. (plus, most of the time, if they do include a western character, they'll give him terrible generic names like John or Richard or Emily, and we don't want that to be a representative of the whole western culture.) Most Chinese authors barely have any knowledge/experience of what it's like overseas, so obviously, if their experience is limited to China, they're going to be the most comfortable writing a full cast of Chinese people and not include anyone else.
All in all, I feel like if a novel doesn't go out and degrade another ethnic group or race, then it can't be considered as racism. There's far more examples of racism in real life which should be more worried about than China's extreme case of patriotism. Really, it's not a problem of racism but rather diversity, and those two are very, very, different concepts.
