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Based on the theoretical basis of the cultural schools of communication and translation studies, this article focuses on the translation, dissemination and reception process of the most representative and influential Lu Xun novels and "Dream of Red Mansions" among Yang Xianyi's translations. It combines macro research with micro research and fully considers the impact of social and cultural factors such as ideology and international relations on the production, dissemination and reception of translated works. In addition, it conducts an in-depth and detailed investigation of the dynamic process of Chinese literature foreign translation through text analysis, quantitative statistics and other means, including the selection of translation materials, translation strategies, communication channels, reception effects, etc. Through typical case studies, we try to discover the advantages and existing problems of the state-sponsored translation model, and provide some reference for the foreign translation of Chinese literature.