(I'm assuming your sensors and ai equipment are stock 1.5, as shown in your intro)
They can see you using their inferior radar, but they can also detect radar transmissions in some mods. There's been quite a bit of debate over the existence and effectiveness of Japanese radar detection. But historicaly, early war is fine, the Japanese racist thinking of the time concluded they had incredibly good eyesight, so they trusted too much in lookouts, 43+ you see radar sets become more and more common. Now if we look in the .sns (sensors) files we can deduce that CO1 is radar detection, and if you go through the Japanese Escorts you can see it's marked null for them.
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