e examine the local institutional and political connections factors that influence the foreign direct investments (FDI) of emerging markets firms. Investigating FDI of 754 Chinese companies over the period 1999–2013, we find that the quality of local institutions to support business activities matters. Firms from institutionally strong provinces were more likely to have FDI. Interestingly, firms from institutionally weak provinces also used FDI perhaps as an escape. Political connections to government officials also seem to support FDI activities, particularly for firms from weak institutional environments. Connections to central government officials seem to support FDI to a greater extent than ties to local officials. Private firms benefited more than state- owned enterprises from such political connections. The results inform our understanding about the role of the quality of home institutions, particularly at the local level, and firms’ managerial relationships with public officials, as drivers of FDI strategies for emerging market firms.