Laowai is endearing to them and to most of us headly and non headly wise guys. It is not condescending. "Wise guys" and "headly" is condescending. Expat is a person not living in their homeland for a certain time. Laowai can be a visitor, a resident or someone not of Chinese extraction.
Saying Laowai projects the speaker is Chinese? nothing of the sort!, Just like calling you a stupid laowai does not mean I am nothing of the sort.
Oh, yeah, you should call people you don't know offensive names, should you?
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