With China’s Panda Diplomacy Fading, How Korea’s K-Wave Is Winning Asia’s Soft Power Race

For decades, China sent its giant pandas to foreign zoos as a grand gesture of friendship, goodwill, and cultural charm. But the glow surrounding “panda diplomacy” now appears to be fading after Japan recently returned two giant pandas to China — marking the end of their 50-year presence. The shift points to a wider soft power challenge for Beijing at a time when South Korea’s cultural influence has rapidly expanded across the world, including in India.

“China used Confucius Institutes to build soft power, but they were mired in controversy since it was a state-backed initiative to push Beijing’s strategic objectives. S Korea’s ‘K-pop’ struck a chord with youth, and its appeal grew organically through mouth-to-mouth publicity that was not driven

by state actors. This is the structural advantage that Korean cinema or music had over Chinese,” says Kalpit A Mankikar, China Fellow, Observer Research Foundation (ORF).

What Panda Diplomacy Meant?

“Panda diplomacy” refers to China’s long-standing practice of gifting or loaning giant pandas to other countries as a gesture of goodwill. The tradition dates back to the Tang dynasty, but it took modern diplomatic form in the 20th century, particularly after the 1970s, when Beijing gifted two pandas, Ling Ling and Hsing Hsing, to the US after then President Richard Nixon’s historic visit, in a sign of normalised China-US relations and marking a pivotal moment for China’s foreign policy.

Later, countries such as the UK, Japan, Spain, and France were also given pandas. The animals became living ambassadors, representing cooperation during periods of geopolitical thaw.

Since 1984, China stopped gifting pandas due to their dwindling numbers and instead started loaning them to overseas zoos, often in pairs for 10 years, with an annual fee of up to about $1 million, a report by Reuters said.

Recently, Japan bid farewell to its last two giant pandas on January 27, when twin siblings Xiao Xiao and Lei Lei were sent back to China. Their return marks the first time since 1972, the year Tokyo and Beijing normalised diplomatic relations, that Japan no longer hosts any pandas.

Shortly thereafter, Chinese authorities confirmed that the pair from Tokyo’s Ueno Zoo would be repatriated about a month earlier than originally planned.

How China’s Soft Diplomacy Worked

In recent years, panda diplomacy has faced a mix of domestic and international pressures. Within China, rising nationalism has led some citizens to question the cost and purpose of loaning pandas abroad. Following reports of perceived mistreatment and poor health of pandas in overseas zoos, most notably the case of Ya Ya and the death of Lele at the Memphis Zoo in the US, netizens had expressed strong indignation.

While the public expressed outrage, the Chinese government and state-run media, such as the Global Times, adopted a more cautious and conciliatory tone, attempting to maintain the “cuddly” image of the, for the most part, successful “soft power” tool.

A 2013 Oxford University study highlighted the timing of China’s lease of pandas to Canada, France, and Australia “coincided with” uranium deals and contracts with these countries. The panda agreements with Singapore, Malaysia, and Thailand also coincided with the signing of free-trade agreements. Sometimes, pandas are also used to express China’s displeasure with a nation.

In 2010, China recalled two US-born pandas, Tai Shan and Mei Lan, after Beijing warned Washington against a scheduled meeting between then-President Barack Obama and the Dalai Lama, which Beijing views as a dangerous separatist.

In a recent downturn in bilateral ties, Ya Ya, on loan to the US for 20 years, was returned in April 2023.

How Did South Korea Up Its Soft Power Game?

While China grapples with the evolving relevance of panda diplomacy, South Korea has steadily built one of the most effective soft-power ecosystems in modern history. The Korean Wave, or “Hallyu,” began in the late 1990s, with the export of television dramas and pop music. It has since expanded into film, gaming, cuisine, fashion, and beauty industries. Unlike a single symbolic export, Korea’s soft power functions as a multifaceted cultural network that appeals to diverse global audiences.

In 2000, a 50-year ban on the exchange of popular culture between Korea and Japan was partly lifted, which improved the surge of Korean popular culture among the Japanese.

K-pop groups dominate international music charts, Korean dramas trend across streaming platforms, and Korean skincare brands shape global beauty routines. Importantly, much of this influence is fan-driven.

For example, K-Pop sensation BTS ‘ARMY’ has reportedly 90 million to 136 million fans worldwide. The ‘BTS army’ is responsible for at least half a million social media mentions daily. In 2023, the music group’s sales reached an astronomical US $1.5 billion. Moreover, it attracts at least 800,000 tourists to South Korea every year, generating over US $3.9 billion for the South Korean economy.

There are almost 50 countries around the world with a Hallyu Reach Power index above 70 (out of 100), including several Middle Eastern countries such as Oman, Qatar and Kuwait. Hallyu Reach Power considers factors such as a country’s economic infrastructure, the social demographics, and the Korean government’s efforts to export Hallyu products to that country.

In 2024, the number of Hallyu fans worldwide reached 225 million across 119 countries. Exports of Hallyu-related products and services—covering culture, content, food, and beauty—brought in approximately US $14.16 billion. Exports of cultural intellectual property (IP), including music, movies, and games, reached a record US $9.85 billion in 2024. South Korea’s cosmetics exports reached a record high of US $10.2 billion in 2024.

The South Korean government has not been absent from this growth. Policy support, investment in creative industries, and international cultural promotion have all played roles, but the momentum largely comes from private creators and fan communities. Economically, the impact is measurable: tourism, merchandise, exports, and global brand partnerships have all surged in tandem with cultural popularity. Soft power, in Korea’s case, has translated into tangible economic capital.

Where The US Stands

For much of the late 20th century, the United States defined global soft power through Hollywood films, pop music, fashion and technological innovation. American cultural exports set worldwide trends, and English-language media dominated international screens. However, the landscape has become more fragmented. Political polarisation, shifting foreign policy priorities and the rise of competing entertainment industries have diluted the singular dominance once held by Hollywood.

This does not mean American soft power has disappeared. Its universities, technology firms and entertainment sector remain influential, but global audiences now consume a broader range of cultural products. Streaming platforms have democratised access, allowing Korean dramas, Spanish thrillers and Indian films to share space once reserved almost exclusively for American productions. The United States still wields enormous cultural reach, yet it now operates in a more competitive arena.

India’s Position In The Soft-Power Landscape

India occupies a unique space in the soft-power conversation. Its influence stems from a blend of cinema, cuisine, yoga, spirituality, literature, and a vast diaspora spread across continents. Bollywood remains one of the world’s largest film industries, and Indian music and dance traditions enjoy widespread recognition. The country’s democratic identity, multilingual media ecosystem and cultural diversity provide a deep reservoir of soft-power assets.

However, India’s soft power often functions less as a coordinated global strategy and more as a decentralised cultural presence. The diaspora plays a significant role in shaping perceptions, while digital platforms increasingly amplify Indian content to global audiences. Unlike Korea’s highly structured entertainment export model, India’s influence is diffuse but resilient, rooted in both heritage and contemporary creativity.

“The appeal of India’s cultural quotient is via Yoga, Ayurveda, Hindi, Tamil, Malayalam, Bengali cinema, digital public infrastructure narratives, and diaspora networks. Soft power can be integrated with economic diplomacy; For example, Yoga, Ayurveda must plug into tourism and hospitality sectors, Hindi cinema could feed into branding of fashion,” suggests Mankikar.

A Symbolic Shift Or A Strategic Turning Point?

The waning prominence of panda diplomacy does not signal the end of China’s cultural influence, but it does reflect a broader transformation in how soft power operates. In an era defined by digital participation and fan-driven engagement, cultural appeal increasingly flows from community enthusiasm rather than state symbolism. South Korea’s success illustrates how layered cultural ecosystems can outperform singular diplomatic gestures, while the US and India demonstrate that soft power remains potent when anchored in diverse creative industries.

“Soft power is subtle and grows organically. Earlier, soft power travelled through the medium of cinema and cultural exchanges. Today, digital media amplifies it through new-age tools like streaming services, gaming, etc.,” said Mankikar.

Nations that cultivate authenticity, creativity, and community engagement are finding that cultural diplomacy no longer depends on grand gestures alone; it thrives on everyday connections forged across screens, songs, and shared stories.