It's not racist. It's all about the intention; as a company, you don't want to expend a single extra dime to comply with the regulations. since the population is pretty much homogeneous you can just blur out the Japanese and you are pretty much guaranteed to cover 99% of the cases.
Business don't exist to respect or care about people they exist to generate profit so the idea of a business "respecting" something is not even realistic.
The law is what outlines what are the limits and guarantees the basics rights to everyone.