That's not completely correct.
First, Japan instituted the waist line program because they were becoming too much like the US due to a large change in lifestyle (and, consequently, eating) in Asia. Japan and China have "westernized" considerably in the last few years.
Second, I think you have the waist lines wrong: it's 33.5" for men, and 35.5" for women. This doesn't apply to everyone, though: it is targeted at those 40+. They are measured during their annual physical; if they are over the limit, they are given dietary advice and scheduled for another check-up in 3 months. If after 6 months there is no change, they will again attempt some form of re-education. If they are still not able to bring their waist line within the targets, it is their employer who is fined or assessed a higher insurance premium. The goal is to encourage employers to provide healthier cafeterias and encourage physical activity.
Lastly, the reason Asia as a whole have been skinny for many years is because of their dietary habits, food supplies, and exercise habits.