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> Can someone explain why they think this is a detrimental practice for native Japanese?

You're quoting a practice applied to foreigners, but you say "for native Japanese". Maybe there was a typo, or I could be misreading?

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Presumably they’re asking why this is being done, since it’s obviously not for the benefit of the immigrants.

That's my bad, it's poorly worded. I meant something closer to "why would this practice of excluding low-earning foreigners be bad for the native Japanese".

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