The recent scandal dubbed “ Chifagate ” and the revelations about the so-called “ Dragon Club ” have once again put the relationship between Peruvian political power and Asian investments under scrutiny.
However, beyond the anecdote of a dinner at a chifa or visits to the Palace, there is an underlying cultural and commercial structure that Peru seems unable to fully understand.
To analyze what lies behind this pragmatism and how these groups actually operate in states with fragile institutions, we spoke with Dr. Patricia Castro Obando, PhD in Chinese Anthropology.
Castro Obando proposes a journey from the first waves of migration to the current figure of the “commercial agent”, that key piece that walks stealthily through the corridors of power.
In this interview, we unravel why the Chinese businessman has no ideology, what the concept of Guanxi really means, and how the “porosity” of our system is the perfect scenario for a landing that, although it may seem soft, can end up crushing our own laws.
MARÍA CERVANTES: How has the profile of the Chinese entrepreneur in Peru evolved from the first migrations to the formation of an economic elite?
PATRICIA CASTRO: Before getting into the story, it is vital to make a clarification: my analysis is neither a defense nor an apology towards those involved in the “Chifagate”.
What we see there is corruption from beginning to end. However, my interest as an anthropologist is to go beyond the media scandal, which is just a passing fad.
Our task is to understand anthropologically how these networks operate, because if we do not understand the system that allows these behaviors, we will continue to be surprised every time the system is violated.
The profile of the Chinese businessman who travels to other parts of the world, and in this case to Peru, is quite old; it is related to the first waves of Chinese immigration to the world and to Peru. In the book * The Other Blue Side *, by Dr. Vilma Derpich, the second wave of Chinese immigrants (1890-1930) is analyzed, which was different from the first wave of 1849.
While in the first wave poor workers or “coolies” arrived to replace slave labor on cotton and sugar plantations in a situation of semi-slavery, in the second wave Chinese businessmen and financiers arrived to invest in Peru, do business and connect local trade with other parts of the world.
A paradigmatic figure of this period is Aurelio Pow Sang, a businessman who arrived in Peru already wealthy. Pow Sang established commercial networks and managed to unite the Chinese community during a time of intense racism, giving immigration a new image.
However, his success was not only commercial; he built a political apparatus and connections with the government that allowed him to integrate his businesses with power, obtaining such legitimacy that in 1921, he was the first Chinese person decorated with the Order of the Sun.
He was a transnational businessman who linked his businesses in Peru with Hong Kong and Europe, even participating in the social elite of the time.
MARÍA CERVANTES: You have written about Guanxi and how this cultural system is reflected in business; could you tell us a little more about it?
PATRICIA CASTRO: To understand how Chinese entrepreneurs operate outside their borders, it is necessary to understand their mentality and their cultural and commercial traditions.
In China, it is impossible to do business if one is not under the Communist Party line and follows the directives of the political power; this is a contemporary practice.
Added to this is the concept of Guanxi , a system of relationships based on an exchange of mutual trust: “I help you, you help me.”
Based on Confucian principles, this system should operate within ethics and morality, but often that line is broken both in China and outside of it to use Guanxi for other purposes.
The Chinese businessman rewards his counterpart with gifts (which have strong cultural symbolism), trips, donations or aid, hoping that at some point the counterpart will respond in the same way.
Breaking the Guanxi —that is, receiving help and not reciprocating when requested—is considered a grave betrayal of trust. This system is vital for survival in China and is adopted in countries with weak institutions.
MARÍA CERVANTES: So, who are the ones who open doors for them in Peru? The figure of the ‘agent’ is mentioned a lot, why are they so crucial for these companies?
PATRICIA CASTRO: In Peru, there are different levels of Chinese businessmen, but the figure of the commercial agent stands out, an actor who is not just any “Chinese” but a key player with a long period of residence in the country.
The agent is a businessman with established businesses, familiar with the business climate and, above all, the local political climate. He has a network of connections with authorities, which he has cultivated gradually, often since they were mere candidates or low-level officials.
Large Chinese transnational companies do not arrive from nowhere; they operate under an accumulative system, which means that they always reinforce themselves on a previous basis and rarely expand alone, but usually arrive together.
They rely on these agents, who in academia are called gatekeepers or “gateways,” who serve as linguistic and cultural intermediaries, since the managers of large corporations often do not speak Spanish.
These agents are fundamental because:
- They avoid cultural clashes by correctly interpreting national events for their Chinese counterparts.
- They function as a logistics and operational platform, providing supply channels while the large company adapts to the local reality.
- They contribute “seed capital” or participate in the structure of the projects, although their role usually goes unnoticed and they are not visible figures in the public eye.
- They provide a “cushion” of accumulated social capital, ensuring a much softer, safer and more efficient landing for transnational investments.
In essence, the Chinese entrepreneur is collective and pragmatic; he does not seek to build networks from scratch, but rather contacts the agent to pave the way for him, allowing businesses to be established on a structure of trust and contacts already validated.
MARÍA CERVANTES: Another characteristic we see is that they have good relations with all political parties, regardless of ideology.
PATRICIA CASTRO: It is a mistake to attribute a political ideology to Chinese businessmen; they are deeply pragmatic and have no political affiliation or preference for the left or right.
Their approach to political parties is equally broad, seeking stability and profitability for their economic project in unstable regions like Latin America. They have invited figures like Keiko Fujimori, as well as politicians from other political leanings, into their networks, because what matters to them is access to the current political power structure.
In fact, I’ve seen mayors and officials of all levels in China—from low-level civil servants to ministers, presidential candidates, and political party leaders—all without ideology.
A clear example of this dynamic occurred during Alan García’s administration. At a working breakfast, García told them directly: “When you have problems in Peru, come and talk to me, knock on my door“.
This statement prompted Chinese businesspeople to stand and applaud, as it was exactly what they wanted to hear: in China, trade problems are usually resolved directly with political authorities. This event illustrates how contacts have been forged between the Chinese side and Peruvian authorities at all levels for years.
The success of illicit practices in Peru stems from the state’s porous, fragmented structure and significant institutional weaknesses. This fragility is exploited by businesspeople of various nationalities—previously the Spanish and Brazilian companies involved with Odebrecht—to secure their investments by establishing direct connections with those in power.
Chinese businesspeople prefer to keep a low profile and avoid media attention. Therefore, the role of the press is crucial: by focusing on these actions, it generates oversight that the political system fails to provide on its own. This is not about stigmatizing a nationality, but about reforming the system of control over our own authorities, who currently enjoy very broad powers without real oversight.
