"Xenophobic" is probably a better word than "racist" in both cases, but yes, if it's about students it's fearmongering.
The OPM problem was not about students, and in one case it was about people physically located in China, unlike students who are visiting the US. If you're giving unrestricted access to a database of personal info on Americans to grad students, you have bigger problems regardless of their nationality. Find people where you have a documented history of them being trustworthy. And if necessary, require them to get clearance, that's what clearance is for.
The OPM problem was not about students, and in one case it was about people physically located in China, unlike students who are visiting the US. If you're giving unrestricted access to a database of personal info on Americans to grad students, you have bigger problems regardless of their nationality. Find people where you have a documented history of them being trustworthy. And if necessary, require them to get clearance, that's what clearance is for.