This　study　investigates　the　influence　of　overseas　ethnic　Chinese　networks　on　China’s　outward　foreign　direct　investment　using　panel　data　from　2007　to　2018.　The　empirical　results　show　that:　first,　overseas　ethnic　Chinese　networks　can　promote　outward　foreign　direct　investment　from　China.　Second,　this　influence　is　achieved　through　cultural　identity.　In　addition,　considering　the　heterogeneity　of　the　business　environment　in　host　countries,　we　find　that　this　transmission　path　is　clearer　in　host　countries　with　unhealthy　business　environments.　©　2022　Informa　UK　Limited,　trading　as　Taylor　&　Francis　Group.