Wouldn't hating someone from another village just be like generic Xenophobia? I can't imagine two villagers from the same Asian country but two different villages are genetically distinct enough to count as different "races". Or are we just using "racist" to mean "bigoted"

I play EVE Online which has a decently sized Chinese playerbase and my god those racist fucks would give racists in the west a run for their money. See it daily of "small brained whites" or "The whites are here" or "white pig" or "sleepy whites".

But as soon as you joke and say "man it looks like the Tianamen Square Massacre of 1989 in here" in local chat they all collectively freak out on you.

I've witness people being racist because someone is from another village

We have this in Germany too. Traditionally, the area where I live hates the area where I was born. These two places are maybe an hour apart and in the same state. All because they were governed by different nobles ages ago who had different ideas about Christianity. Tbh though it was much more of a thing in my parents’ generation.

I mean, people in a town I lived in were upset because kids from the next town over were using the public swimming pool. This was in northern Virginia, so not liking people from another village anywhere in the world hardly seems strange.

seems like classist/elitist, than racism.

Not all prejudice is racism, as that refers to an ideology pushing a hierarchy based on the misconception that race is white black asian etc.. What you are talking about isn't even ethnocentric since the ethnicity is the same. We have other more accurate terms for regional parochial xenophobia, but plain "prejudice" is not wrong.