Calling somebody "Japanese", etc. can be confusing because it can be regarded as either referring to one's ethnicity or where they grew up. In Japan which is almost mono-racial, it is often thought of as ethnicity. In the UK which is increasingly multi-racial, it is often thought of as place of birth. For me though it is neither, as I have both big ties with the UK and Japan so feel like I am mixed British and Japanese, but I don't think most people think that way. I can only regard somebody who has lived their entire life in Japan as Japanese. Their ethnicity may differ, but I don't think it is right to be prejudiced based on this unless it is of factual reasons such as starring as a Japanese person in a historical movie.
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