Recently, many scholars sought to understand Chinese OFDI（Outbound Foreign Direct Investment） determinants and location choices due to its growing role in reshaping the world economy. Large amounts of Chinese investment to countries which are considered politically risky led many scholars to try and explain the reasons for which Chinese investors are willing to invest in these environments. Logically, Chinese outbound investors should avoid places that are prone to high levels of political risk, and stay away from politically unstable environments. The common explanation for this puzzle provided by academic literature is that Chinese investors are accustomed to operating in poor institutional environments given their home country is one where corruption and shady business practices are the norm. In this paper I refute this claim and provide a novel point of view to solve the puzzle. I claim that home-host country political relations is a factor which plays an important role in directing Chinese investment to politically risky host countries.My hypothesis is that Chinese companies would invest in politically unstable environments when the host country has good political relations with China. I use two case studies to analyze OFDI flows to politically unstable countries in order to test my hypothesis, Myanmar and Iran. These case studies demonstrate that good inter-state political relations indeed leads Chinese investors to invest in politically risky countries. First of all, because Chinese friendly diplomatic activities towards Myanmar and Iran lead both countries to trust China and provide it with privileges for investment and favored treatment. In addition, many investment deals between China and the host counties were signed during senior official visits. Another evidence that good political relations lead to investment in in these countries is that when political relations between them and China deteriorates, so did Chinese OFDI flows. This paper has important implications, first and foremost in finding a better explanation to the puzzle of Chinese investment to politically risky environments than the literature currently provides. In addition, this finding could assist in steering away the common perception regarding Chinese OFDI flows toward what is considered to be unstable and dangerous destinations due to China’s need for energy resources.