Rep. Eric Swalwell’s gubernatorial campaign is facing renewed scrutiny after receiving another large donation from Keliang “Clay” Zhu, an attorney tied to a Beijing-based law firm with historical connections to the Chinese Communist Party.
Campaign finance records show Zhu donated an additional $25,000 earlier this month. The contribution follows a $5,000 donation to Swalwell’s gubernatorial bid in November and more than $10,000 previously given to his congressional campaigns.
Zhu is a partner at DeHeng Law Offices PC, a prominent Chinese law firm originally founded in the early 1990s as the China Law Office, a subsidiary established by China’s Ministry of Justice. The firm was renamed DeHeng in 1995 and has since expanded to more than two dozen offices across China. While DeHeng describes itself as independent, public records and firm materials show ongoing cooperation with Chinese government departments and major state-owned enterprises.
DeHeng lists a single attorney at its “Silicon Valley Office” in Pleasanton, California — Zhu.
According to his firm biography, Zhu has represented Chinese state-owned enterprises and investment funds in major U.S. transactions. He highlights assisting a “major state-owned enterprise” in acquiring majority shares in a Silicon Valley data analytics company valued at $100 million. His bio also states he has helped Chinese companies and funds complete more than $9 billion in U.S.-based investments across industries including semiconductors, artificial intelligence, unmanned vehicles, energy, industrial automation, and biopharmaceuticals.
The biography further notes that Zhu has negotiated with the U.S. Departments of Commerce and Treasury on behalf of Chinese enterprises to secure compliance plans aimed at reducing regulatory risk in the United States. He has also advised a Shenzhen government investment fund on compliance with CFIUS regulations and represented WeChat users in litigation that halted the Trump administration’s 2020 effort to ban the platform.
Critics argue the donations raise national security concerns. Michael Lucci, founder and CEO of State Armor Action, accused Swalwell of exercising poor judgment in accepting funds from someone connected to a firm with CCP roots. Lucci called the situation “outrageous” and urged stronger safeguards against foreign-linked political money.
The issue adds to prior scrutiny surrounding Swalwell’s past interactions with individuals tied to China. The California Democrat previously faced questions after Chinese national Christine Fang, also known as Fang Fang, developed connections with him and his campaign. U.S. officials later described Fang as part of a broader Chinese intelligence effort to cultivate relationships with American political figures. Swalwell has said he cut off contact after being briefed by U.S. intelligence, and a congressional ethics investigation found no wrongdoing. Nevertheless, House Republicans later removed him from the Intelligence Committee, citing security concerns.
Foreign land purchases and Chinese investment in U.S. industries remain active legislative issues, with Congress considering multiple proposals and nearly two dozen states enacting restrictions on foreign land ownership.
