That's not presenting an explanation of how it would not be racism, that's presenting an explanation of the manner in which the racism was formed. And, yes, racism usually forms based on negative experience (either personal or relayed through others, some of which may be intentionally or unintentionally distorting events) of either specific target races or “not-like-me” races generally.
And, it's cyclical, because racism contributes to such experiences in others when it is put into action.