New Book Reveals Corruption Allegations Against California Governor Newsom Linked to Chinese Influence

FIRST ON FOX: A provocative new book raises alarms about corruption in California, dedicating a significant chapter to Governor Gavin Newsom’s connections with a nonprofit organization that the authors claim acted as a primary gateway for corrupt corporations aligned with the Chinese Communist Party to enter the state.

In Fool’s Gold: The Radicals, Con Artists, and Traitors Who Killed the California Dream and Now Threaten Us All, authors Jedd McFatter and Susan Crabtree extensively document Newsom’s engagement with the Chinese community in the Bay Area and his affiliations with businesses suspected of being linked to the CCP.

Tracing Newsom’s Political Roots

The book illustrates how Newsom ascended to power as San Francisco’s mayor in 2004, bolstered by robust support from Chinese voters who celebrated his victory in Chinatown. From the outset of his administration, the authors argue that he was committed to advancing Chinatown’s interests.

Chapter 3 highlights a nonprofit initiative initiated by Newsom called ChinaSF, which the authors contend served as a conduit for CCP officials and individuals involved in illicit activities to exploit California. The authors claim that ChinaSF was crucial in cementing connections between San Francisco and various Chinese business ventures.

A Disconcerting Trip to China

The authors recount a significant trip Newsom took to China, where he was hosted at a Shanghai venue by Vincent Lo, a businessman linked to the CCP. During this meeting, the two allegedly devised a long-term strategy to transform San Francisco into a premier entry point for Chinese investments in the United States.

Upon returning, Newsom reportedly expressed ambition to establish a public-private partnership worth millions to facilitate increased Chinese capital entry into California. This ambitious vision led to the founding of ChinaSF just three years later, a move that reportedly had among the most significant economic impacts of any initiative he started as mayor, generating nearly $5.5 billion from 2008 to 2018 while attracting over 100 Chinese companies to the city.

The Implications of ChinaSF

The book asserts that during this timeframe, ChinaSF played a role in aiding several corrupt Chinese enterprises in their expansion into the United States. One notable company mentioned is Suntech, a solar energy business developed by the CCP, which Newsom personally invited to operate in the U.S. He praised the company’s CEO, Dr. Zhengrong Shi, on multiple occasions and welcomed him onto the advisory board for ChinaSF.

In addition to green energy firms, the authors discuss how real estate companies participated in the influx of Chinese investments through ChinaSF. They detail that Newsom received substantial anonymous donations exceeding $23,000 from Z&L Properties, a company whose billionaire owner faced legal issues for bribing a government official in San Francisco.

Red Flags About Chinese Interests

Chapter 3, titled “Feeding the Dragon,” addresses various concerns regarding Newsom’s connections with China. The authors claim that ChinaSF operated as a tool for transforming San Francisco into a global center for biotechnology and pharmaceutical industries.

The authors highlight how numerous Chinese biotech companies flocked to the area due to enticing tax incentives and with insufficient vetting processes. Among the most alarming recruits is JOINN Laboratories, which maintains military ties.

Exploring Newsom’s Ties with Huawei

Furthermore, the book delves into ChinaSF’s associations with controversial firm Huawei, known for beset practices leading to scrutiny from numerous U.S. administrations. The authors point out that Huawei became the leading financial backer of ChinaSF in 2016, a fact that largely went unnoticed despite the company’s controversial reputation.

The book explains how ChinaSF organized events featuring Huawei that facilitated the establishment of a new research and development office in San Francisco, emphasizing the need for transparency regarding the funding sources behind ChinaSF.

A Complex Structure Behind ChinaSF

Although portrayed as a nonprofit, the book reveals that between 2009 and 2014, ChinaSF operated as a limited liability corporation with sole membership attributed to the San Francisco Chamber of Commerce. This revelation suggests a deeper, more convoluted bureaucratic structure than previously understood.

Demand for Greater Accountability

The authors underscore that the influence of ChinaSF deserves heightened scrutiny. They argue that statements from government entities and media lacking critical depth have mischaracterized its operations.

The book presents a strong case that ChinaSF served not merely as a public-private partnership but rather as a complex front legitimizing extensive transfers of technology, wealth, and property to China while facilitating the establishment of Chinese businesses within the U.S. economy.

As articulated in the book, an intricate web of agreements, press releases, and ceremonial events portray a seemingly innovative initiative yet mask a troubling absence of accountability concerning who profits from these agreements and the level of due diligence performed when vetting incoming Chinese firms.

The authors express concern about the involvement of questionable firms and the broader implications for the U.S. economy, especially regarding financial exploitation of American citizens. They conclude that San Francisco’s relationship with China, framed as a beneficial one, demands rigorous examination and accountability.

Reflecting on California’s Future

In 2008, Newsom asserted the importance of San Francisco’s long-standing relationship with China and its sister city, Shanghai, emphasizing that ChinaSF aims to build on these connections for future economic prosperity. Yet, as this book reveals, the alleged risks associated with such partnerships urgently call for public discourse and careful analysis, clarifying the reality behind the façade of vibrant cultural and economic ties.