Is that supposed to be an example of biblical racism? Not even a good try. It's also a misquote and taken out of context.

Regardless of that, the Canaanites were of the same race as the Hebrews, as are all Semetic people, including BTW Arabs.

Concerning the biblical context of the misquote, that was supposedly God telling the Israelites not to go into Canaan because the Canaanites would kick their asses big time and God wouldn't (couldn't) protect them. The Canaanites were city dwellers and pretty well fortified and armed and the Israelites were semi-nomadic and not as well prepared for battle and would have been slaughtered for sure.