LOS ANGELES — Generations of Chinese immigrants have settled in Arcadia, transforming the San Gabriel Valley suburb, a typical bedroom community, into a “Chinese Beverly Hills” with high-end real estate and luxury shopping.

But the city’s residents, many of them affluent, learned this week that a prominent local elected official had a relationship with the Chinese government that federal prosecutors said crossed the line into illegal conduct.

Authorities this week said Arcadia’s mayor, Eileen Wang, was acting as an illegal foreign agent of China, a situation that has brought both shock and concern. Officials were quick to denounce supposed efforts by the People’s Republic of China to influence U.S. policy, noting that Wang’s alleged involvement occurred before she was elected to public office.

Wang, a U.S. citizen, stepped down from her post on the Arcadia City Council on Monday after entering into a plea agreement with prosecutors over charges that she acted under China’s control to promote propaganda in the U.S. between 2020 and 2022.

The federal case outlines an alleged scheme in which the Chinese used Wang to burnish their country’s image. Experts said it is part of a larger effort by the government to recruit allies in local governments across the United States.

In Arcadia and other heavily Asian cities in the San Gabriel Valley, the charges have brought questions about what exactly China is doing, along with alarm about a potential backlash in the United States.

“Whenever something like this happens, it causes concerns within the Chinese American community as to whether or not we’re going to become scapegoats,” said Joaquin Lim, who served for 17 years on the Walnut City Council.

There is no evidence presented so far of a larger conspiracy among local officials, and some residents fear new anti-Asian sentiment. Arcadia Deputy City Manager Justine Bruno emphasized in an interview with The Times that all of Wang’s alleged misconduct occurred before she was elected to the City Council in 2022.

U.S. Rep. Judy Chu (D-Monterey Park), who previously endorsed Wang, said in a statement that she’s “shocked and disappointed” by the conduct Wang admitted to in court records. She added that the “racist discourse we are seeing from the right on this matter is deeply troubling, but also unsurprising.”

“Hatred has no place here, and I will continue to fight against all forms of discrimination, including the racial profiling and scapegoating of Chinese Americans,” she said.

“We understand that our community is shocked and hurt by this news, but what’s important to remember is that this was the conduct of one individual,” Bruno said. “I would not want to do a disservice for what Arcadia is known for and the strength of this community. There’s a lot of pride and heritage in this community.”

There have already been calls to investigate others in the city. Local community Facebook pages have been filled with calls for the entire City Council, which is made up of Asian Americans, to be replaced.

One commenter said the charge against Wang wasn’t a surprise to those who live in the city.

“The San Gabriel Valley has been ground zero for maternity tourism and foreign investment schemes,” the person wrote. “Hopefully this getting national attention leads to a larger crackdown and accountability. Foreign nationals using our weak system against us is a major problem.”

Former Department of Homeland Security spokesperson Katie Zacharia, in discussing the situation with Fox News, called for “a wholesale review” of not just legal permanent residents, but also “people who are here from adversarial countries.”

Wang said in a 2024 interview that she moved to Southern California from China 30 years ago. Her mother was a Chinese medicine and acupuncture doctor and her father was a physician in Sichuan province before working at USC, she said.

Wang, a mother of two, has lived in Arcadia for two decades. Before she was elected to the City Council in 2022, she was mainly known for running an after-school program in Arcadia called Little Stanford Academy. She was also involved in the Arcadia Lions Club and the Arcadia Assn. of Realtors and was the president of the American Southwest Chamber of Commerce USA from 2018 to 2022.

From late 2020 through at least 2022, Wang worked with Yaoning “Mike” Sun, her former fiance, to run a website called U.S. News Center that branded itself as a news source for Chinese Americans, according to the plea agreement unsealed Monday. Both Wang and Sun “executed directives” from Chinese government officials, posting requested articles and reporting back with screenshots showing how many people viewed the stories, the agreement says.

On Aug. 20, 2021, after being complimented for a post that was viewed more than 15,000 times, Wang responded to a Chinese official: “Thank you leader,” according to the plea agreement.

Prosecutors accused Sun and his Chinese government contacts of cultivating Wang in hopes that she would rise in politics and help them strengthen China’s influence in California.

Lim, the former Walnut City Council member, said the situation will send a strong signal to political candidates and incumbents, particularly Chinese Americans, to more carefully scrutinize the source of campaign donations.

“Once you raise your right hand to be sworn in as an elected official, you’ve got to take your job very seriously,” he said. “I mean, this is our country now, not China, and your allegiance should be to our country.”

The allegations against Wang are part of a growing concern that China is attempting to influence state and local governments.

In 2022, federal authorities issued a notice warning that the Chinese government was collecting personal information about state and local leaders and trying to court those who might rise to higher office, according to documents obtained by the Wall Street Journal.

In 2024, federal authorities charged Linda Sun, a woman who had served as a senior deputy to two New York governors, with being a Chinese agent working to push that government’s agenda. Prosecutors alleged that Sun’s actions included preventing representatives of the Taiwanese government from having access to the governor’s office.

On Tuesday, a popular mall in Arcadia — which is nearly 60% Asian, according to census data — was crowded with predominantly Asian American families, teenagers and groups of friends moving between retail stores such as Pop Mart, a China-based toy store, and popular dining spots Din Tai Fung and Haidilao Hot Pot.

Mike Altamirano, 29, lives outside the city but loves visiting Arcadia, which he calls one of the nicer areas in Los Angeles County. A local politician being influenced by China isn’t something he would expect, he said while sitting in the courtyard at the mall eating lunch.

“I’m not completely surprised ... but at the same time ... I don’t like it,” he said.

Still, it could be a wake-up call for voters to scrutinize politicians a bit more before casting their ballots, he added. The unintended consequence, he fears, will be rooted in racism.

“It’s even more reason for people to kind of blame more of the minorities around here and groups who are already facing prejudice,” he said.

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