A reducing population is going to be chaotic on many levels.
But:
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We know that populations surely cannot increase exponentially forever. Hopefully that is something we are awake to on this site vs taking the more usual alt-media/American-Christian view that populations should keep increasing forever, without thinking about how that might actually work.
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In its decision to limit immigration, Japan might at least emerge from all this still being Japanese. The west may well delay the chaos of reducing population, but it has a whole different type of chaos coming as its populations turn muslim.
There isn’t a scenario from here where we get to carry on and everything is fine. There will be chaos. It’s a case of choosing which chaos you want. Personally, I’d sign up for the Japanese version over and above what the rest of the west is going for. But that’s just me.