This article raises an important question about the growing multipolarity of global power. China has become a challenger for the US’ status as the predominant world investor. China’s Belt and Road Initiatives (BRI) is a profound illustration of how China has risen as an alternative for developing countries seeking financial aid. China, gradually, is replacing the United States as the most influential investor in many developing countries. Indonesia and Kenya are two countries that have benefited from the BRI. How can we make sense of this changing trend? What explains a country’s decision to consider China as a potential alternative for US funding?

This article contends that China’s investment behaviours are preferable to the US’s, particularly in energy-related sectors. Institutional veto players in Indonesia and Kenya work differently for Chinese and US investors because China and the US require different conditions for investments. The US’s investments often involve tedious, complex conditions that require political and institutional adjustments. This paper argues China’s investment strategy is changing our preconceived understanding of international norms and foreign investment practices. The argument is developed using primary and secondary data collected through interviews and document analysis of the government’s official publication, including the investment agreements. The findings of this study aim to contribute to the issue of linkages between the domestic and international political economy of foreign investment. This paper highlights the need to marry two levels of analysis to better understand the interconnected world and how domestic governance fits into this era of growing multipolarity.