This paper examines the relationships among perceived racial discrimination, coping resources, and psychological distress experienced by 372 ethnic Chinese migrants in 3 Australian cities, within the social context of ongoing debates on Asian immigration. Based on the stress-coping-strain framework, it was expected that migrants’ recent increases in psychological distress would be associated with greater perceived racial discrimination, and lower levels of coping resources. Possible moderating effects of coping resources were examined. Hierarchical regression analyses provided broad support for the stress-coping-strain framework, and indicated direct effects of low personal and ethnic self-esteem and having a small number of Anglo-Australian friends on increased psychological distress. The findings are discussed with regard to implications for migrants’ wellbeing in the context of sociopolitical debates.