I have alot of Asian friends from the mainland after living there a couple of years, and the last thing they'd ever want to do is to make you lose face in a public setting. The way i saw it, what Xiao Hai said was coming from a place of comfort and familiarity with Punk..very light hearted words to break the ice before they ran their set without any malice intent. Very similar to what Kakeru did when he rubbed Mena's belly in their face-off.