For 11 years, the G'Day USA gala has brought together business leaders, tourism experts, government representatives and the ubiquitous celebrities, performers, sportspeople and screen stars who serve to attract media interest.

Hollywood film studios are courting Chinese investors to gain access to the world’s most populous nation, brushing aside concerns that their new partners will seek to censor the next generation of films and TV shows.

In fact it may be that the distinction between "hard" and "soft" power may be morphing into a new concept put forward by Prof Nye, that of "smart power".

Vladek Juszkiewicz on Polish Film Festival Los Angeles at CPD

Watch this CPD video of Vladek Juszkiewicz discussing the Polish Film Festival as a Cultural Diplomacy initiative.

Hollywood has been beguiled by this romantic quest for liberation, offering a tantalizing glimpse at the leading role the film industry could play in an independent Scotland if voters choose freedom in Thursday’s referendum.

Beijing knows how important China is for Hollywood and it can afford to make high demands. Western producers are still lining up to get access to the Chinese market. In addition to mercantile barriers, China has also set up cultural barriers to Hollywood. The goal is to make sure the local film industry isn't suffocated by Hollywood. And, fascinated by Hollywood's soft power, the leadership in Beijing is dreaming of setting up their own big industry in the medium term. Hollywood, India's Bollywood, now soon "Chinawood"?

Throughout Beijing, images of Optimus Prime, Bumblebee, and other protagonists in the latest Transformers film stare from bus station billboards, shopfront windows and even a statue near Tiananmen Square. As US film studios look further afield for profits, the Hollywood sign now looms over China.

This week Western newspapers had a field day with North Korea’s response to the release of a trailer for the upcoming movie “The Interview” starring Seth Rogan and James Franco. The BBC, NPR and Washington Post all carried headlines announcing that North Korea had threatened war over the movie. Not to be outdone, the New York Post ran a headline proclaiming North Korea “threatens ‘merciless’ war” over the movie, while the Huffington Post announced “North Korea Threatens… ‘All Out War.’”