You're employing a red herring - the internment of Japanese Americans is not relevant to a security and vetting procedure. Whatever justification they used shouldn't change your assessment of how the specific justification used here bears on the present issue.
I agree there is a problem of China paranoia, and your average Chinese American shouldn't be the subject of racist discrimination. While wanting to reduce this is admirable, national security is not the field to do it. The geopolitical forces shaping this shift are much larger than the national security apparatus - negating it at the expense of security is not their remit and never will be.