Originally it was a meme about the way he and Obama looked while walking in a picture, and was innocuous. It began to be used as a way to refer to Xi Jinping in negative propaganda without directly putting his face on it and grew the racist connotations implicitly quickly after by new users of the meme, and the explicit usage with dog-whistled racism followed quickly thereafter with the excuse "we only do it because he doesn't like it."
If I had to guess he didn't care and maybe found it funny originally (if he even saw it early on) but using a caricature for politics instead of good critique is dumb and good to ban. And that's all this was
I see it as a result of the way that imperialism gives Americans the feeling that whatever they do is influential because of the status given through imperialism. A hybrid which grows every time America announces that they will do something on the global stage and is received by vassals as god-given words.
So, no, they won't realize any of that until a significant shift in material circumstances allows for some class consciousness to grow, and that depends on Americans fighting to deepen and work out what that will look like.