A political scandal involving undisclosed meetings between Peru’s acting president and a Chinese businessman has cast a spotlight on the copper exporter’s deep ties with Beijing, at a time of heightened U.S. scrutiny in Latin America.
Jose Jeri, who assumed office in October following the removal of former President Dina Boluarte, has denied any wrongdoing in three meetings he acknowledged holding between December and January with businessman Zhihua Yang. Yang owns Chinese import shops and holds a concession for an energy project, and has previously been named in congressional probes for allegedly supporting Chinese firms suspected of corruption.
The controversy, dubbed “Chifagate” by local media, has prompted opposition lawmakers to file impeachment motions against Jeri, who is tasked with completing the current government’s term through July. Peru’s public prosecutor has launched a preliminary investigation into alleged influence peddling, which Jeri has denied.
Analysts note the scandal comes as the U.S. seeks to limit China’s influence in the region. “It wouldn’t be surprising to see Washington question China’s investments in Peru, as it has done in Mexico and Panama,” said Martin Cassinelli, trade and investment analyst at the Atlantic Council.
Peruvians will vote for a new president on April 12. Despite political instability, Peru has maintained one of Latin America’s strongest growth rates, largely supported by mining revenues. China has been a key partner: since 2015, it has surpassed the U.S. as Peru’s top trading partner, accounting for 33% of trade versus 14% with the U.S. Chinese firms also control major copper mines, power generators, and the Chancay megaport, a new South America–Asia trade route.
“Criticism of a Chinese businessman is also, practically, criticism of China,” said Jhon Valdiglesias of the Center for Asian Studies at Peru’s National University of San Marcos. Analysts caution that while Peru’s economic ties with China are robust, the scandal could make new Chinese investments less welcome in a society sensitive to corruption and favoritism.
Jeri’s approval rating has fallen from 51% to 41% since the scandal broke, and a recent Ipsos poll found 78% of Peruvians see signs of corruption in his meetings with Yang. China’s embassy in Peru declined to comment.