Japan can resolve this low population problem by simply just opening up it's borders allow more to immigrants to settle in Japan. But than again that would "dilute the Japanese race" especially when the locals starts to have children by marrying immigrants (even if they became Japanese citizens). Many Japanese politicians have a problem with this for some reason or another. That explains the weird proposition.
Integrating immigrants into Japanese society is certainly an effective way to combat against declining population. Many other industrial countries are using this strategy to improve their respective birth rates.
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