The difference between the terms ''subjects'' and ''citizens'' for the people of Japan is a very big one.
The term ''subjects'' means that the Japanese people are under direct command of the Emperor. He has an absolute power over them, can do anything with them by his will, and there's no governing body that is controlling his actions. The people are obliged to be subservient.
The term ''citizens'' means that the people have rights. They are protected by law, and the ruler of the country can not harm them or order them what to do without their consent. This term means that the people are free to express their opinion on the matters, and that they have legal protection.