By Alicia Gutiérrez | 2025-03-25

SANTIAGO - A Chilean Public Prosecutor's Office investigation into influence peddling has linked a Chinese businessman, shaking Chile-China relations and raising doubts about the two countries' long-standing commercial partnership.

The controversy erupted after authorities seized the phone of former Santiago mayor Iraci Hassler, who faces corruption allegations over a failed clinic purchase.

"The investigation [of the purchase attempt] revealed a criminal scheme to manipulate the purchase and sale contract, resulting in millions in losses to community assets," the Public Prosecutor's Office said in a document published in September 2023.

Extracted WhatsApp messages revealed a conversation between Hassler and Karol Cariola, the then-president of the Chilean Chamber of Deputies, who resigned on March 17 amid the scandal.

In January 2022, Cariola messaged Hassler: "One of my Chinese business friends owns a mall in Santiago. Because of administrative issues, it couldn't pay the license fee, and now it's facing closure or license revocation, even though it just needed to renew its license."

"I'll find out what it's about and let you know," Hassler replied, according to a Reportajes T13 story published on March 11.

While the identity of this "Chinese friend" was initially unclear, Chilean media quickly uncovered his name and revealed his ties to the Chinese Communist Party.

Influence broker

Bo Yang, also known as "Emilio" Yang, is listed as an interest manager on the Lobby Law platform, with journalistic investigations uncovering his business dealings with Chilean officials.

Beyond being a businessman, Yang has been actively involved in meetings of the Chilean-Chinese Interparliamentary Group, which aims to strengthen Sino-Chilean relations.

Yang's first registered meeting in that capacity took place on November 24, 2016, with Carlos Alvarez, then-director of InvestChile, Chilean broadcaster T13 reported March 11. The agenda included a $500 million foreign investment proposal for a lithium battery plant in Chile.

In 2019, Yang arranged a meeting with then-Minister of Public Works Alfredo Moreno on behalf of China Railway International Group, lobbying records show. The discussion focused on the company's infrastructure plans in Chile, according to T13's report.

On June 27, 2023, Yang attended a lobbying meeting with Marcela Hernando, then Chile's mining minister.

Representing the Chinese Chamber of Commerce and Industry in Chile, Yang sought to "understand the development strategy, key projects, and cooperation opportunities in Chile's mining sector, and to engage in in-depth discussions with its team," according to the Lobby Law platform, as cited by T13.

Yang accompanied a delegation of Chilean MPs to China in 2024, acting in a lobbyist-like capacity. The visit was part of the scheduled activities of the Political Dialogue Committee, a joint body of the Chilean National Congress and the Chinese National People's Congress.

Beijing covered most of the expenses, with the Chilean Chamber of Deputies contributing a small portion for additional costs, T13 reported. The delegation was led by Cariola, then president of the Chamber of Deputies.

Additionally, Yang travels frequently, T13 reports. Since 2012, he has made at least nine recorded trips from Chile to Mexico, Brazil, China, Argentina and Peru.

Shady business

Beyond his political connections, Yang is deeply tied to the growing network of Chinese businesses in Chile.

One of these is China Mart, a supermarket in Santiago's Meiggs neighborhood, home to the largest Chinese workforce in the city.

This store was reportedly at the center of a liquor license dispute, prompting Cariola, then-president of the Chamber of Deputies, to ask Hassler, then Santiago mayor, to intervene -- allegedly because of her friendship with businessman and lobbyist Yang, according to WhatsApp chat transcripts.

In mid-March 2023, the Metropolitan Health Authority (SEREMI) shut down China Mart following hundreds of citizen complaints on social media, El Mercurio reported March 7.

Authorities confirmed reports circulating on platforms like TikTok that the store was selling turtle and other exotic meats without proper labeling.

A team from Entorno visited the supermarket this year. It was back in business and operating normally, with various products of questionable origin and labeling still on sale.

According to local media, Yang has registered several businesses in Chile, including Comercializadora Maxworld Limitada, Fanatico X Coo Limitada and Comercializadora Imperio Dragon Limitada, the latter linked to electronic gaming and pool halls.

In 2017, the Internal Revenue Service (SII) fined Imperio Dragon for tax evasion.

Yang is under scrutiny too because of his partnership in Fanatico X Coo Limitada with a Chinese citizen facing three legal cases for smuggling. This same partner owns an apartment where Cariola had been living until the scandal broke.

Cariola had been paying a discounted rent, 28% below market value, to Fanatico X Coo Limitada.

Because of these and other irregularities, El Mercurio reports that the Prosecutor's Office has requested a formal statement from Yang and a registry of all Chinese suppliers who have current or expired contracts with the Santiago municipality.

Amid the growing controversy, the Chinese embassy in Chile swiftly issued a response March 7, distancing itself from Yang.

"The communication channels between this Diplomatic Mission and the Chilean Government and National Congress are direct and fluid, so under no circumstances will the Embassy use any intermediary to communicate with the Chilean authorities," the statement read.