Governments around the world, particularly authoritarian ones, often deny inconvenient or unfavorable information, calling it fake news or false rumor, and yet what was denied often turns out to be true eventually. How will citizens react when the initial “fake news” is verified to be real? What are the consequences of false government denials on government credibility and citizen satisfaction? Using a survey experiment in China and a follow-up survey, we find that citizens can be persuaded by the authorities’ denials and reduce their belief in a piece of news that has been declared “fake.” But when the denied news turns out to be real, citizens will reduce their belief not only in the denial at hand but also in a similar denial in the future and reduce their satisfaction with the government. Thus, false denials have both immediate and lasting effects on government credibility and can erode citizen satisfaction with the government.
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