Mainly what we use are stereotypes. Chinese are very hard working, Koreans are slim and fit, Arabs are fatalists, Americans are friendly, etc. As you point out they are characteristics of the group, but they fail when applied to any individual. There is nothing wrong with stereotypes, they are just another heuristic we all use. Everyone uses stereotypes.
Racism is a belief, discrimination is an action. This is something that has been absolutely perverted in the US today. Racism exists in all societies, in all peoples. I've encountered it many times as I've traveled the world and I just ignore it. It's the discrimination that is the problem, but usually there's not much you can do about it so you just suck it up and move on. Some people in the US think racism is like polio, that it can be eradicated, which is just stupid. But as we've seen recently, the stupid have the stage and they are loud and persistent.
I'm not picking on or criticizing you at all, I just felt like addressing the issue.