Konditor,
I'm responding down here, because this is where we do Q&A about words.

I'm unfamiliar with both "Chinese Cap." A "Chinese Wall" is a good thing and I've always assumed it was a reference to The Great Wall.

Different people have different backgrounds and find different things offensive. Example: There's been a big push in some venues to train students that "using the word 'oriental' in reference to a person" was insensitive and probably racist. But most asians I have known use the term in that way. I've known exactly one asian who hated the term 'oriental' applied to him and exactly one asian who hated the term 'asian' applied to him and preferred the term 'oriental.' When my wife referred to east asians as orientals, I mentioned to her that some people think the term is racist. Her immediate response: "Who says that? That's stupid!"

Similar kind of thing with the use of the term "Indian" instead of "Native American." Many native people refer to themselves as Indians and don't have a problem with other people doing the same. My step-father is native and is fine with either term.

It's a little confusing. There are clearly some people who are just looking for something to be offended about and there are clearly other people who are genuinely hurt by these terms. I have no answer to the dilemma.