' And when one woman muses that the baby looks cute enough to eat, a man says he doesn't eat Chinese babies 'because a half hour later I'm hungry and have to eat another.'

...was a play on the expression "looks good enough to eat" (which is sometimes used to justify much cruder jokes than this). I don't think anyone was advocating eating Chinese babies. Literally the character was saying that Chinese babies are exempt - non-Chinese babies are the ones with worries!

If anything, I'd expect to see people complaining about the use of the overworked stereotype that Chinese food doesn't fill you up.

I'm with you Phil, this is pretty much just sitcom comedy. I probably would have chuckled had I heard the line with proper delivery (but that's my personal problem).