No Spookin' the Chinese

So the International company I work for has "a visitor from China" coming tomorrow. We have been directed to take down all Halloween decorations because "they don't celebrate Halloween" and "we don't want them to be uncomfortable". First of all, the first statement is not entirely true. Secondly, how would they be uncomfortable? The organization I work for promotes Diversity. It would make more sense that we would expect any visitor to accept our customs and traditions as we would most likely be expected to accept theirs if we were visiting. That's Diversity. There are certainly more offensive American business practices and the overall business culture is quite different. Is there an assumption that the "little China man" will be scared by our ghoulish garb? The whole thing seems quite racist to me.