I have also seen this film and absolutely loved it.
Mr. Eastwood has, I believe, gone on record as saying society has gotten too PC. His character in this film is definitely not Archie Bunker. Prejudiced, yes, but racist, no. The point of this film is to show how Clint's character evolves in his beliefs and attitudes.
The Chan reference is very brief and meant to provide some of the comic relief that this film has.
Steve,
Agreed. This most powerful and ultimately, poignant film unites rather than separates the races and nationalities. It is an excellent film I would recommend.