This study looked at why Chinese companies choose to invest in other countries. They found that the location choice is influenced by factors like costs, market conditions, and the presence of other companies from the same country. The study used data from 1997 to 2015 and found that agglomeration, or clustering of firms from the same country, plays a big role in where investments go. Interestingly, China's production costs actually have a positive effect on foreign investments. This means that recent investments in China are more about entering the market than seeking efficiency. As China opens up its trade more, the patterns of investments by Chinese companies are becoming more similar to those coming into China.