That chapter was the subject of much conversation at our house, about dialect and caricature and perception of "others" and all sorts of things like that.
Which is why I wouldn't recommend it to an unsuspecting parent as a humorous book appropriate for a 7yo, without a heads-up about the content. We got an enormous box of (mostly Newbery award / honor) books from ebay when DD9 was 6 or so, and I read every one of them before handing them over, but I wouldn't necessarily do that for a book that had been recommended without reservation.
At our house, that particular book isn't read. My kid is already aware that white people see Chinese people with their expectations more than with their eyes, and I see no reason to rub it in. Fortunately (or not), there are plenty of books suitable for conversations about the pervasiveness and general acceptability of racism, that don't carry the additional emotional burden of targeting her.
