In a segment which aired on 16 October (13), the host sits down with a group of kids to discuss the shutdown of the American government. When asked what the U.S. should do to cut its debts, one boy quips, "Kill everyone in China."
Kimmell laughs before replying, "That's an interesting idea."
The sketch caused outrage with members of Asian-American activism group 80-20, who have complained to channel bosses.
Abc chiefs have now apologised for allowing the remark to air. A statement reads, "We offer our sincere apology. We would never purposefully broadcast anything to upset the Chinese community, Asian community, anyone of Chinese descent or any community at large.
"Our objective is to entertain. We took swift action to minimize the distribution of the skit by removing it from all public platforms available to us and editing it out of any future airings of the show."
It's the second of Kimmel's kid-focused sketches to cause a stir - the comic felt the wrath of Kanye West earlier this month (Oct13) after a show featured two children mocking claims made by the rapper in a Bbc interview.
The pair went on to settle their differences when the Stronger hitmaker appeared on the show to defend comments he made declaring himself a musical genius.