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The Tower of Peace was an extension of City Wok constructed by Tuong Lu Kim in order to murder his nemesis, Junichi Takiyama, the owner of City Sushi, by tricking him into coming to its top to stage his "suicide".
Ironically, Junichi threw himself off the tower after finding out that Lu Kim was American, and therefore he wasn't able to tell Americans apart from Chinese people.
The Tower of Peace makes an appearance in the game, where it has been taken over by Mongolians and the player is sent to attack the Mongolian children before facing the Mongolians themselves. The Tower of Peace is then destroyed, but the player can visit it again whenever they want, as well as collect any remaining inventory or collectibles.