A link to an article about how Japanese hentai comics may lead to trans awareness, has led to a very interesting and informative discussion on the Japanese approach to transgender identities and explicit erotica, including a discussion on the nature of "futanari" or women or intersex people with penises.
Carah writes:
Futanari is a word used for hermaphroditism and the intersex condition. It literally mean to be two kinds. Long ago smugglers used to capitalize on the fact that they could get away with smuggling if they dressed up like women. Eventually this lead to body searches and bang - you have the word more widely used. Lots of stories, art, etc began to emerge out of the joke the government guards thought of this.
In Japan, most trans activists consider it offensive. Instead the word used most often nyūhāfu, (new half) and while it’s offensive, it helps separate the destructive transphobic manga culture from ourselves. It’s equivalent to Shemale. In the sex industry the term and implies you do sex work. In the general population it means cross-dressing man or trans woman. Most Japanese people use the term in reference to transgender people. The better newer term is: toransujendā. Both of these terms are borrowed words.More here!