This study investigates the effect of political misinformation as propaganda on the legitimacy of the Chinese government. A survey experiment (n = 2,236) was conducted to analyse the effect of positively spun misinformation on citizens’ perceptions and support for the government on two pivotal issues: the economy and air pollution. Results show that spreading positively spun misinformation is beneficial to the regime, as it leads to positive perceptions of the issue and increased support for the government. Interestingly, even when misinformation is exposed through credibly sourced corrections, trust and support for the government remain as high or higher than for the control groups. These effects are significant and hold constant in two issue types, underscoring the strategic value of disseminating positively spun yet false information in China. These findings have rich implications for studies of misinformation and fact-checking in general and China's information politics in particular.