All living humans are part of one race, so by your logic nothing is racism. This is illogical, however. Racism is the irrational belief that other people are of a different race, of course it is always false, but it is still a real mental problem. And clearly one that affects way too many people, and particularly in Israel.
IDF soldiers find improvised weapons and ammunition at Jenin refugee camp (Haaretz)
from the article: Loyalty oath proves Israel is racist, say Israeli Arab leaders