A term used by white people to dismiss criticism and objection to racist policies or racial discrimination; attempting to discrediting the critic as a person inciting racial tension when none (supposedly) actually exists. Functionally equivalent to a Red Herring designed to distract the audience from the real issue (IE pre-existing racial tension).
Essentially, use of the phrase indicates a desire to stop discussions of racial tension. Probably because they make white people feel really uncomfortable.
"Why is it cops harass black people so much more than white people?"
"Stop trying to rile people up! You're just Race Baiting!"
The best damn operating system ever made, except maybe Windows 2000. So good, that people are still using it even after 9 years (an eternity in computer time) despite the fact Microsoft came out with two more Operating Systems since then.
You can tell someone is a jealous mac/linux fanboy by the way they bash Windows XP.