The DUP member made the comment on a live radio interview with BBC's Alan Simpson.
He was on air to discuss actor Liam Neeson's visit to Ballymena to receive the Freedom of the Borough and used a racist term to refer to a Chinese take-away or restaurant.
In a statement Mr Paisley said he had not intended to be insulting or offend the Chinese community.
A spokesperson for the North Antrim DUP MP said he had been in contact with representatives from the Chinese Welfare Association NI and the NI Council for Ethnic Minorities (NICEM).
"He personally has an exceptional track record with working with the Chinese community in the UK and he will continue to do so alongside Patrick (NICEM) and Eileen (CWANI) and others as he moves forward," they added.
Eileen Chan-Hu, Chief Executive of the Chinese Welfare Association said the term Mr Paisley used was not meant to be offensive and they have accepted his apology.
"Ian Paisley Junior MP has been an integral part to working with our community for many years from supporting discrimination on work permits access of Chinese staff to supporting us on the issues of racial incidents at Westminster," she added.
"We look forward to continuing our good work with Ian Paisley Junior."
A spokesperson for the Equality Commission said Mr Paisley's remark was "very regrettable".
"The careful use of non-racist language is essential for public life in Northern Ireland.
"Our elected representatives have a particular duty to promote respect for the law and for promoting good race relations in Northern Ireland.
"They should not use language or make statements which might contribute to a feeling of hurt or offence by any section of our community."