While not really as racist as it derogatory counterpart chink, it is, while not as explicit, describing the eyes of those of East Asian descent (aka China, Japan, Korea, Vietnam, the Philippines, etc.). The word usually doesn't have the same racial effect when used by two Asians, as opposed to the exchange of someone of another race (i.e: Caucasian-Asian, African American-Asian, Hispanic-Asian, etc.).
Kevin (Filipino): Hey Chanel, pose for the camera!
Chanel (Laotian): -smiles with eyes open-
Kevin: Open your eyes! Oh nevermind, you're jes' chinky.
Chanel: -laughs- Hahah, shut up!
Eric (Caucasian): Sup, chinky face, wanna get a quickie?
Kimberly (Japanese-American): -smacks Eric- Racist demon!
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