Wang, 58, who served as mayor of Arcadia, agreed to plead guilty to a felony charge linked to allegedly operating on behalf of China without properly registering with US authorities, according to federal prosecutors.
The case has attracted national attention in the United States due to growing concerns over alleged foreign influence operations targeting American political institutions and public officials.
According to prosecutors, Wang is accused of acting under the direction of individuals connected to the Chinese government while failing to comply with legal requirements that demand foreign agents register their activities with the US government.
Federal authorities said the charge falls under laws intended to ensure transparency when individuals engage in political or public activities on behalf of foreign governments or entities within the United States.
The Department of Justice alleged that Wang participated in activities aimed at advancing Chinese government interests while serving in public office.
Prosecutors further claimed she failed to disclose those alleged links as required under US law.
Details surrounding the full scope of the accusations were expected to emerge during court proceedings following her agreement to plead guilty.
The resignation marks a dramatic fall for the Southern California politician, who had built a public profile through local governance and civic engagement within Arcadia.
Her departure has triggered intense political discussion and renewed scrutiny over foreign influence concerns within local and national politics in the United States.
Authorities have increasingly warned about attempts by foreign governments to cultivate relationships with political figures and influence policymaking processes in Western democracies.
The case involving Wang is likely to further intensify tensions between the United States and China, whose relationship has remained strained over issues involving trade, technology, espionage allegations, and geopolitical competition.
US federal prosecutors emphasized that the charges are part of broader efforts to enforce laws designed to protect national interests and maintain transparency in political activities involving foreign governments.
Although Wang agreed to plead guilty, the legal process is still expected to proceed through sentencing and additional court procedures.
Penalties linked to the felony offence could include fines, probation, or imprisonment depending on the final ruling by the court.