The term RICE has been around about as long as...well, rice itself.
Growing up around Harley Biker Guys, I heard the term a lot, specifically towards Yamaha and any other Japanese or Asian manufactured motorcycle. Since Asian cars really weren't too hot back then, it was rarely used for cars.
Rice is the 3" lowered Civic with the 4" exhaust, unpainted body kit (which will remain unpainted for the life of the car) Chicken wire in the air dam, a Wal-Mart 1000 Watt subwoofer with a 50 Watt amplifier, donuts for rear tires, the only two rims the kid can afford with bald low-pros on them on the front and still getting schooled by my unmodified 163k mile Eclipse with no trurbo and a leaky water pump and me simply accelerating briskly as I normally do, not racing, but mr. rice in the Civic sure thinks I am as he winds the motor up well into redline leaving a thick blue cloud of exaust the whole way and still not keeping up. The "dirty look" always preceeds any kind of percieved 'street combat' the ricer is involved in.
In real terms, I believe it has more to do with behavior than it would with the actual ethnicity of one's car or themselves, although it considered by many to be derogatory.
I think it's more cool to drive a reliable car and take care of it well. I have more respect for a kid who drives a car and accepts the fact that building a race car is simply beyond thier expertise, budget or necessity than one who tries foolishly and destroys a perfectly good car in the process.
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