In Chinese culture, as in most cultures, honesty is a virtue. However, the application can be nuanced, particularly when weighed against the concepts of social harmony and “face” (面子 - miànzi). While a malicious lie is universally condemned, a “white lie” — known as a 善意的谎言 (shànyì de huǎngyán, literally “well-intentioned lie”) — can sometimes be viewed as a sign of social intelligence or kindness. This contrasts with some Western cultural ideals, like in the US, where “brutal honesty” is sometimes prized as a mark of sincerity. In China, telling a friend their new haircut looks good (even if you disagree) or saying you're “busy” to politely decline an invitation might be considered preserving harmony rather than being deceitful. The primary goal is often to prevent the other person from losing face or feeling embarrassed. Therefore, while 谎话 itself is negative, the motivation behind it is often judged carefully within the social context.
谎话 is a high-frequency noun used across all registers, though it's most common in informal and semi-formal speech.