The U.S. Department of Justice has officially accused two Chinese nationals, Yuance Chen, 38, and Liren “Ryan” Lai, 39, with seeking to recruit U.S. military personnel for espionage purposes and operating as unauthorized agents of the People’s Republic of China (PRC). The accusations are the result of a thorough investigation conducted by the FBI and the Naval Criminal Investigative Service (NCIS), which revealed a protracted intelligence collection campaign organized by the Ministry of State Security (MSS) of China.
In order to gather sensitive information on U.S. Navy personnel, facilities, and activities, as well as to find potential recruits with ties to China who might be coerced or convinced to spy, the two individuals were operating clandestinely inside the United States, according to federal prosecutors. U.S. authorities have portrayed the case as part of a broader pattern of Chinese espionage activities that targets U.S. national security and defense assets.
As early as 2021, Yuance Chen, a Chinese lawful permanent resident of Happy Valley, Oregon, reportedly began working for the MSS. While visiting various Navy locations and recruitment facilities, he was tasked with photographing bulletin boards that displayed the names and other identifying details of new Navy recruits, some of whom had Chinese ancestry. He then sent this information to Chinese handlers, who may have used it to identify potential recruits.
In a particularly unsettling episode, Chen visited a Navy recruitment center in San Gabriel, California, and photographed a board with the names of incoming recruits. Additionally, he allegedly used social media to connect with a Navy service man, set up a tour of the USS Abraham Lincoln aircraft carrier in San Diego, and sent Chinese intelligence the sailor's personal and professional data. Investigators think Chen wanted to see if he could get the sailor to work as a spy.
It is thought that Liren "Ryan" Lai, a Chinese national who arrived in the US on a tourist visa in April 2025, oversaw and guided Chen's actions. According to the prosecution, Lai actively enlisted Chen in the scheme rather than merely cooperating with it. Lai allegedly organized a $10,000 cash "dead drop" in January 2022, concealing it in a locker at a location in Livermore, California, as payback for confidential information Chen had previously provided.
On June 27, 2025, Lai was captured in Houston, Texas, and Chen was apprehended in Portland, Oregon. On July 1, both appeared in court for the first time in their respective districts. The charges against them are based on 18 U.S. Code §951, which states that acting as a foreign government agent without first notifying the U.S. Attorney General is a federal felony. They each risk a $250,000 fine and up to 10 years in federal prison if found guilty.
This case highlights the Chinese government's persistent and persistent efforts to compromise U.S. military and intelligence systems, according to FBI and Department of Justice officials. Targeting foreign nationals and dual citizens to gather private information, force people into espionage jobs, and jeopardize the security of other countries is a well-known practice of the PRC's Ministry of State Security. This case is seen as a top-priority illustration of how foreign intelligence agents are gaining strategic military advantages by employing non-traditional strategies including social media, human targeting, and clandestine payments.
In a public statement, U.S. Attorney General Merrick Garland said:
“The Department of Justice will not tolerate efforts by the Chinese government to undermine our national security by targeting American service members and infiltrating our institutions. These arrests should serve as a clear warning: the U.S. will defend its personnel and infrastructure with every legal tool at our disposal.”
The two world powers' increasingly antagonistic stance over security, cyber operations, and geopolitical influence is reflected in this case, which comes after a string of recent crackdowns on Chinese nationals' espionage-related activities in the United States. Prosecutors are not ruling out the possibility of more charges or the involvement of other people related to the MSS, and the investigation is still underway.
The arrests are being praised as a huge counterintelligence triumph since they prevented what may have become a serious military security violation. The significance of being vigilant against foreign recruitment operations, particularly those that target active or former military people, has been emphasized by U.S. authorities.
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