Public diplomacy constitutes a significant category within international relations studies, and its discourse system encompasses numerous political terms and cultural concepts with distinctive Chinese characteristics. This paper examines the English translation practices of core terms such as “people-to-people exchanges,” “strategic competition,” “soft power,” and “sharp power” by analyzing the text Decent Friendship Wins True Respect: Shanghai Public Diplomacy Practice. The study reveals significant challenges in translating public diplomacy terminology, including high political sensitivity, complex cultural connotations, and differences in international discourse systems. Guided by functional equivalence theory and terminology principles, this paper proposes translation strategies that integrate elements of domestication and foreignization. These approaches aim to provide reference points for disseminating public diplomacy discourse internationally, thereby enhancing the recognition of China‟s distinctive diplomatic discourse system on the global stage.