Developing intercultural competence has been an important focal point of university education especially in the area of foreign language instruction. In order to incorporate intercultural competence in our Japanese language instruction, we have brought together students studying Japanese from the U.S., Korea and China to join our students studying Japanese in Sweden for online exchanges. In order to create an ideal virtual classroom environment in an international setting, we have examined how students from different countries interact during the online exchanges in Japanese. In this presentation, we will discuss the process, strength, difficulties and potential of such exchanges.