It was always much easier to use stereotypes at a time when individuals did not have much contact with people of other races.
The world is a more intimate place now. There is more daily interaction between nationalities--and this will only increase.

Some of the old stereotypes-like this song- will have to give way, and be put to rest, for the simple reason that they are one-dimensional.

I won't sing any song that includes this kind of lyric. It's time for them to be put to rest.
By the way, if you really want an opinion on the correctness of this term, why not ask in one of the chinese newsgroups, ie, soc.culture.singapore, or soc.culture.hong-kong?