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Yeah, but not in the same way Westerner might imagine. Japan consists of one big in-club, and this not only excludes foreigners but also those from the lower working classes, ethnic minorities (who they claim don't exist, omg lololol) and can also include those who have been socially ostracised due to their behaviour or family history.
This description merely includes foreigners by extension. We just happen to fall under the "no-persons" categroy in the Japanese public's perceptions.