What you've just described is actually at least two other words, similar, but not equal to racism.
Namely:
ethnocentrism
sectarianism
These things are not racism.
People don't get to just toss words around, adjusting them to suit their preferred narrative.
The differences are not insignificant. Cultural differences are tied intensely to modes of dress, language barriers, and more.
Lastly, social status among ethnic peers is not racism. Inheritance and nepotism are also not racism.
Things like this may be comorbid with forms of racism. They are still separate and distinct problems.
It doesn't mean the outcomes are different, but we have different words for different things, because there are real differences, and they still count and contribute to real world situations even when contemptible.
Namely:
These things are not racism.
People don't get to just toss words around, adjusting them to suit their preferred narrative.
The differences are not insignificant. Cultural differences are tied intensely to modes of dress, language barriers, and more.
Lastly, social status among ethnic peers is not racism. Inheritance and nepotism are also not racism.
Things like this may be comorbid with forms of racism. They are still separate and distinct problems.
It doesn't mean the outcomes are different, but we have different words for different things, because there are real differences, and they still count and contribute to real world situations even when contemptible.