I agree that it's generally important to respect other people and other cultures, both ethically because it is a ethical thing to do, and practically because it helps us all "get along".
I find, if we strip this from the colonial context, or remove it from the racial context entirely (this is now a conversation between two Han Chinese people of the same social class, for example) there is some relationship between what I perceive to be an increasing focus on the critical importance of a child being called their exact name and no abbreviation, mispronunciation, standard nickname, or contextually assigned nickname, to be a symptom of an American hyper individualism and "rights culture".
As an aside I have been told by more than one person with a foreign name before even attempting their name that they would prefer I just call them an Americanized abbreviation of their name for convenience. Obviously I want to try to do what they would like, but if they were to insist on a name I struggled with, I would consider them to be a generally annoying person.
Wanting to be called your name and not liking having a person in a superior position arbitrarily rename you as an example of "American hyper individualism". Incredible.
It is literally someone over you stripping you of your own choice of identity.
Even if we removed the idea of teacher/student relationship from this, are you still fine with people just arbitrarily renaming you? That someone respects you so little they won't even respect your own choice in name, that's fine?
I'm absolutely fine with someone who has a name which could be difficult to pronounce in the local language choosing to go with another name. It is their choice. That's the big difference. They're choosing to go by that name in those contexts. It wasn't just arbitrarily chosen for them.