deep and profound" racism in Japan, and ghost
Particularly shocking to some in the West, was a lack of sensitivity among the Japanese toward racism against black people. For example, one Japanese doo-wop pop group (see Rats & Star) in 1970s routinely appeared on stage painting their skin dark brown and wearing sunglasses to look black, totally oblivious to the implications of such an act in the West.
Similarly, during the 1980s, Takara Co. created and sold a doll called "Dakko-chan" (snuggle baby), an inflatable dark-colored plastic doll with fat lips and arms that could wrap around human arms or other pole-like objects. The doll was a commercial hit and was soon exported outside Japan as "Little Black Sambo".
Many Americans made claims that it resembled blackface costumes worn by performers in the minstrel shows popular in the past. After receiving numerous complaints, the sales of the doll were stopped. In Japan, as a sort of hasty reaction, there were efforts to remove anything that people believed were racist against black people. The sale of Japanese translations of the book "Little Black Sambo" was halted. Any pictorial representations of blacks with fat lips, especially in manga and anime, were purged during this period only.
Foreigners in Japan, particularly those from Europe, North America, Australia and New Zealand, are often called Gaikokujin or Gaijin. The first noticeable influx of foreigners occurred in the 1980s, when the Japanese government adopted a policy to give scholarships to large numbers of foreign students to study at Japanese universities. In addition, as the Japanese economy grew quickly in the 1980s, a sizeable number of Westerners began coming to Japan. Many found jobs as English conversation teachers, but others were employed in various professional fields such as finance and business.
Although some have become permanent residents or even naturalized citizens, they are generally perceived as short-term visitors and treated as outsiders to Japanese society. For some, it is hard to find the Japanese myth of "them and us" because of Japanese hospitality.
Article 14 of the Constitution of Japan states that all citizens are equal under the law, and they cannot be discriminated against politically, economically, or socially on the basis of race, belief, sex, or social or other background. However, this clause does not apply to discrimination committed by private individuals or establishments.
Hate speech is not a criminal offense, but insulting, such as calling someone "fool!", is a minor civil offense resulting in monetary compensation (which is often lower than the cost of going through the judicial process). Japan does not have human rights legislation which enforces or penalises discriminatory activities committed by citizens, businesses, or non-governmental organisations.
Japan does not have specific hate crime laws. Racism and hate-motivated offenses that include assault, vandalism, and robbery are prosecuted as regular crimes.
Attempts have been made in the Diet to enact human rights legislation. In 2002, a draft was submitted to the House of Representatives, but did not reach a vote.
Had the law passed, it would have set up a Human Rights Commission to investigate, name and shame, or financially penalise discriminatory practices as well as hate speech committed by private citizens or establishments.
Though the anti-discrimination clause raised little objection, the anti-hate speech clause received very hostile reception from Japanese media, including liberals who saw it as a potential threat to the freedom of speech and publication.
In 2005, the ruling coalition government attempted to resubmit a revised version of the draft which somewhat limited the application of hate speech clause, but it still failed to reach a consensus within the ruling Liberal Democratic Party.
Access to housing and other services
Some apartments, motels, night clubs, and public baths in Japan have put up signs stating that foreigners are not allowed, or that they must be accompanied by a Japanese person to enter.
The most common reason cited for this policy is that foreigners are associated with being overly disruptive and ignoring Japanese etiquette (which causes Japanese residents or clientele to feel uneasy and leave). This is considered to be a big social problem in Japan, however there has been no known opposition nor any legal battles against such a measure.
In the case of housing, it is often stated that those that cannot bring references from their employer or professors might be illegal immigrants who may sublet their room to a large number of other foreigners (which is undoubtedly due to a lack of housing these illegal immigrants encounter).
ref: http://en.wikipedia.org/wiki/Ethnic_issues_in_Japan