Having lived in Hong Kong, China and Taiwan I take a pragmatic view to whether I should be offended by peoples use of the term foreigner.

The Cantonese "gweilo" (lit. "monster/ghost person") and Taiwanese "adoga" (lit. "big nose") are more clearly offensive in literal meaning.

Both are extremely casual, and in most cases no ill will is intended.

But for each I've encountered situations where it wasn't so pleasant.

Notably once in a remote guangdong town, some people stopped on a motorbike, pointed at me and said "Gweilo" before riding off laughing.

Equally at a good friends wedding, his mum kept referring to me as "adoga" in the 3rd person.

"Adoga comes from England" rather than using my name, which she'd known for the past 3 or so years.

In China, I can't think of a specific situation where I was offended by the use of "laowai".