Cut the bacon into small pieces (kitchen shears make this easy), add it to a skillet, and cook over medium-high heat until crispy. Transfer the bacon to a paper towel lined plate and leave the bacon fat in the pan.
Reduce the heat to medium and sauté the onion until softened (about 5-7 minutes).
Stir in the garlic and white wine, and let it bubble until reduced by half.
Add in the tomato paste, chicken broth, cream, crushed red pepper flakes, and Italian seasoning. Scrape up any browned bits from the bottom of the skillet and stir until the sauce is smooth.
Once the sauce starts to bubble, add in the gnocchi. Continue cooking, uncovered, for 10 minutes, stirring occasionally, or until the sauce has thickened and the gnocchi are cooked through.
Stir in the cooked bacon and basil.
Season with salt & pepper as needed and serve immediately with parmesan grated over top if desired.