Right, but in Japan it's legal for businesses to racially descriminate against both potential customers and potential hires. During the height of the COVID pandemic, many businesses had "No Foreigners allowed" signs due to the perception that COVID was spread by foreigners. In the US there's lots of controversy over racism, but in Japan you don't hear about it because it's generally the accepted status quo.
To be clear, I'm not saying the US is not xenophobic. What I am saying is that from an American perspective, Japan is even more so.