Peruvian President Faces Impeachment Threat Over Secret Meeting With Chinese Businessman While Hiding Face With Hoodie

Impeachment Proceedings Begin Over Abuse of Influence and Incapacity
Prosecutors Investigate Hydroelectric Project Bidding Process
Political and Public Backlash Escalates Over Hoodie Meeting
Peru's High Dependence on China Raises Risk of Diplomatic Conflict

Jose Herri, the President of Peru who has been leading the country since the impeachment of his predecessor, now faces the threat of impeachment himself over allegations of collusion with a Chinese businessman. After footage of a private meeting was released to the public, President Herri apologized, stating, "Entering the restaurant in a hoodie fueled suspicions," but political and judicial pressure continues to mount.

On January 28, Yonhap News, citing Reuters and other foreign media, reported that opposition lawmakers in Peru have begun the process of submitting an impeachment motion against President Herri, citing abuse of influence and moral incapacity. President Herri took office in October last year after former President Dina Boluarte was impeached and stepped down.

CCTV footage showing Jose Henry, President of Peru, entering a Chinese restaurant in the capital city Lima on the 26th of last month, wearing a hat upside down on his upper body. Latina Noticias broadcast.

The central issue driving the impeachment effort is a private meeting between President Herri and Yang Zhihua, a businessman of Chinese origin. Local media released footage showing President Herri entering a Chinese restaurant wearing a hoodie and covering his face instead of wearing a suit to meet Yang Zhihua. The incident has been dubbed the "chifa-gate" (chifa meaning Chinese restaurant).

It is reported that since last month, President Herri has met privately with Yang Zhihua at least three times. As the controversy grew, Herri stated, "We only discussed public matters, such as events for the Peru-China Friendship Day, and there was nothing illegal." He further insisted, "Yang Zhihua never made any inappropriate requests or asked me to intervene on behalf of a third party." He emphasized, "If such requests had been made, I would have immediately cut off all relations."

Jose Herri, President of Peru. Photo by AP Yonhap News

Yang Zhihua is known for amassing wealth through the distribution of Chinese imports and has entered Peru's energy industry, winning a $24.4 million (approximately 3.47 billion won) hydroelectric power project in 2023. The project was scheduled to begin commercial operation in June this year, but as of December last year, progress remained at 0%.

Regardless of President Herri's explanations, prosecutors have uncovered evidence that he has maintained contact with Yang Zhihua since his days as a member of parliament and are now investigating whether there was any illegality involved in the hydroelectric project and other related businesses. President Herri has also previously been subject to a parliamentary investigation on allegations that he provided logistical support to a Chinese company accused of corruption.

Some observers suggest that this issue could escalate into a diplomatic problem. Peru is considered a key hub for China's Belt and Road Initiative in Latin America. In particular, Peru's dependence on China has increased significantly since the signing of a Free Trade Agreement (FTA) in 2009. China has been Peru's largest trading partner since 2015, accounting for 33% of its total trade last year. John Valdiglesias, a researcher at the Asia Research Center of the National University of San Marcos in Peru, told Reuters, "Criticism of Chinese businessmen could effectively be seen as criticism of China itself," adding, "This controversy could cast a shadow over Peru's relationship with China."