Two Chinese nationals have been arrested and charged with acting on behalf of China’s Ministry of State Security (MSS) to collect intelligence on U.S. Navy personnel and bases. They also allegedly recruited service members to carry out espionage activities for the Chinese government.
According to the Department of Justice (DOJ), Yuance Chen, a resident of Happy Valley, Oregon, and Liren Lai, who entered the U.S. on a tourist visa in April 2025, were arrested Friday. Both are accused of carrying out covert intelligence operations for the MSS while inside the United States.
Related posts
This Article Includes
- 1 Related posts
- 2 California Man Charged with Murder After Killing Dementia-Stricken Wife in Arizona Care Facility
- 3 Sacramento Man Gets 5-Year Prison Term for Fentanyl Dealing and Gun Possession
- 4 Espionage Activity and Recruitment
- 5 USS Abraham Lincoln Visit and Online Recruitment
- 6 Legal Consequences and Federal Response
The men allegedly facilitated a “dead drop” cash payment on behalf of the MSS, helped recruit potential spies, and gathered sensitive information about Navy facilities and personnel.
The FBI, with assistance from the Naval Criminal Investigative Service (NCIS), arrested Chen in Oregon and Lai in Houston.
“Today’s arrests reflect the FBI’s unwavering commitment to protecting our national security and safeguarding the integrity of our military,” said FBI Director Kash Patel.
“These individuals acted on behalf of a hostile foreign intelligence service — part of the Chinese Communist Party’s broader effort to infiltrate and undermine our institutions.”
Espionage Activity and Recruitment
The criminal complaint, filed in the Northern District of California, claims the MSS has long targeted the U.S. through both civilian and military intelligence operations.
Lai allegedly recruited Chen to work for the MSS in 2021. In January 2022, the pair traveled to Guangzhou, China, and later collaborated on a covert cash drop of at least $10,000 in a day-use locker in Livermore, California.
According to the DOJ, both men continued serving the MSS by identifying U.S. Navy personnel who could be persuaded to work as informants.
In 2022 and 2023, they visited a Navy base in Washington State and a recruitment center in San Gabriel, California, where Chen reportedly photographed a bulletin board listing recruits’ names, programs, and hometowns — many of which were noted as “China.” These photos were allegedly sent to an MSS handler.
USS Abraham Lincoln Visit and Online Recruitment
Chen also allegedly communicated via social media with a Navy member and arranged a visit aboard the USS Abraham Lincoln in San Diego. He’s accused of passing details about that sailor to the MSS. Chen traveled to Guangzhou in April 2024 and March 2025, meeting with MSS officers to discuss task-related payments.
Lai, who entered the U.S. claiming to be an online retailer visiting for two weeks, remained far longer. In May 2025, he traveled from Houston to California, then returned to Junction, Texas, raising suspicion about his movements.
Legal Consequences and Federal Response
Chen and Lai have been charged with acting as foreign agents without notifying the U.S. Attorney General. If convicted, they face up to 10 years in prison and $250,000 in fines.
“Adverse foreign intelligence services like the PRC’s Ministry of State Security dedicate years to recruiting individuals and cultivating them as intelligence assets,” said Assistant Attorney General John Eisenberg.
“Under my leadership, the National Security Division will continue to defend our nation and neutralize our adversaries’ clandestine spy networks.”
