I created an analytical framework integrating political, economic and cultural factors to elucidate how intangible factors impact economic relations between China and Latin America. This will help rethink the conventional thought that smaller institutional distances will attract more investment and understand China’s expanding economic power and influence and its implications on both Global South and the world. The main findings are: (1) Chinese investors are indifferent to political and economic differences; (2) cultural distance is significantly and negatively correlated with China’s OFDI; (3) the indicators imply the potential struggle for concept definition as well as validity and reliability of the data.