Japan continues to be one of the leading countries in the world economy. Despite some decline in its share in world trade, it ranks fourth aft er China, the United States and Germany. Its external sector is highly competitive. Gradually yielding its position in a number of tradable industries to the major rivals from among rich and emerging countries, at the same time Japan signifi cantly increases its role in foreign direct investment in the manufacturing and services industries. The article analyzes the changes in the key trade indicators, the ratio of trade and foreign direct investment, and particularly its impact on the expansion of value chains and their role in maintaining the positions of Japanese companies in foreign markets. Besides, the sensitivity of Japan’s external sector to the COVID-19 pandemic at the macro and micro levels and its active participation in Asian regional integration and the restructuring of the operating and fi nancial activities of Japanese companies to overcome the crisis in the economy and foreign trade are assessed.