Do the Japanese handle criticism poorly?

edogaijin

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One thing has struck me in the time I've been in Japan. I almost never hear a Japanese directly criticize someone. Is this because the Japanese handle constructive criticism poorly or is it due to cultural etiquette? I have specifically noticed that if a foreigner says something negative about Japan or about how some social or economic reform might be good for Japan, Japanese tend to not react very well to it.
 
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