Comments by "Yo2" (@yo2trader539) on "What’s it like being an Asian Foreigner in Japan ?" video.
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There is a translation issue, since "Japanese" can mean both ethnicity and nationality. In the most narrow definition, when we say 日本人, it refers to people with Japanese citizenship. So we don't call Nikkei-Brazilians, Peruvians, Americans, Canadians, Colombians, Mexicans, Bolivians, Argentine...as 日本人. Rather, we use 日系人, and we differentiate them with Japanese citizens who live overseas, who are referred to as "邦人" by the Japanese government and media.
Children of Japanese nationals who were born/raised overseas are not considered foreigners, provided that they receive Japanese education. But even if both of your parents were from Japan, if you don't have Japanese citizenship, you're legally a foreign-national (or 外国人) in Japan. And in Japanese media and government, it's common practice for names of Nikkei-jin to be written in Katakana instead of Kanji. This rule also applies to those who have emigrated abroad and lost Japanese citizenship. (Japanese citizenship is automatically revoked when that person obtains a foreign citizenship.)
In terms of ancestry, there is no doubt you are Japanese. But having Japanese ancestry is not the same as being 日本人 in the Japanese language. For most people in Japan, being "Japanese" means sharing a language, culture, values, norms, history, and identity. As such, if you're fluent in Japanese language and culture, it would be impossible for a Japanese person to consider you as a fellow Japanese. There are many Nikkei-Jin who adapt to Japan and naturalize to Japanese citizenship too.
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