The thing I never liked about the term "wai guo ren" or " lao wai", is that lumps everyone outside of China all in to one group. What if someone called a Chinese person, Japanese? Would they like it? Hell no, for obvious reasons, but also for other reasons. So first off, if you are going to report the news about "wai guo rens", make sure to state where they are from, at the very least.
And second, yes, that guy was an idiot.