If we are describing xenophobia, then xenophobia exists (the fear/mistrust/hatred of the foreign). If we are describing the idea of racial supremacy (best example today, and ever in history, is how Jews think of themselves), then that exists. I view racism as the ideal of racial supremacy. Catholics (universal Christians) are not racist, by definition.
But if we are talking about singling out a single race and hating it, and calling that racism, then it is a misnomer. It should have some other name. It can be called anti-this or anti-that, but it's not racism.
Yes, racism exists, and those who invented the name are the ones most guilty of it.