Reflection, instead of reaction, is what's needed in this case.
Had she reflected, she might have sought a more constructive way to voice her concerns and frustrations as opposed to resorting to an ethnic slur (ching chong).
Had he done so, he might have remembered that Confucius said: “without having studied the rites, one cannot behave." A great advice to all who sojourn abroad, to study or simply to be a guest. His response is perhaps considered clever by many, but being clever is not always as helpful as being sincere.
Had the school administration taken a moment to reflect, not so fixated on hammering down on the nail as soon as they see one, they could have seised upon the opportunity to bridge cultures and foster mutual respect, making the campus, and the world, a better place for all to coexist. Too bad they haven’t done so.
I don’t think that anyone should be punished, the kids’ opinions are as young as their age, they learn to be good and kind because they are inspired, not because they are threatened.
Racial divides are a very complicated issue, beyond the scope of a topic like this, but it's a very important issue.