Do Cultural Exports Shape Country Image? Evidence From Chinese Film Releases and Global Media Data

ABSTRACT This paper investigates how Chinese film exports shape international perceptions of China and associated economic outcomes, drawing on high‐frequency media data from the Global Database of Events, Language and Tone. We match the overseas release dates of 906 Chinese films across more than 120 countries to 355,867 media reports spanning April 2013 to October 2025, treating release timing as a quasi‐natural experiment. A difference‐in‐differences design identifies the causal effect of film exposure on country image, proxied by the sentiment of local media coverage. Baseline estimates indicate that releases produce a statistically significant improvement in the average tone of China‐related reporting, a result that withstands an extensive battery of sensitivity checks. The effect is modest in magnitude, consistent with the limited overseas box‐office reach of most Chinese films, and concentrated in the short run, operating chiefly by altering the surrounding media information environment rather than through mass theatrical viewership. Heterogeneity analyses reveal stronger responses in culturally proximate settings, middle‐ and high‐income economies, Belt and Road Initiative partners, and contexts where prior sentiment toward China is comparatively favourable, with international co‐productions and higher‐rated films yielding larger gains. Mechanism evidence shows that exposure heightens public attention and information‐seeking, thereby fostering more positive evaluations. These improvements carry economically meaningful consequences, including increased imports from China and enhanced appeal as a destination for international students. Because gains accrue primarily among already favourable audiences, the findings suggest a reinforcement rather than persuasion mechanism, illustrating both the potential and the constraints of film as a soft‐power instrument.