Two individuals, identified as Yuance Chen and Liren Lai, have been taken into custody by U.S. authorities for allegedly conducting espionage activities targeting the U.S. Navy. The arrests, which took place in Happy Valley, Oregon, and Houston, Texas, were announced by the Department of Justice (DOJ) last Friday.
Chen and Lai are accused of operating on behalf of China's Ministry of State Security (MSS), the nation's primary foreign intelligence service. They face serious charges for their alleged clandestine efforts aimed at undermining U.S. military operations and national security.
According to the DOJ, the pair engaged in a range of covert activities. These included gathering sensitive information on Navy bases and personnel, facilitating "dead drop" cash payments, and attempting to recruit U.S. Navy members to assist their espionage efforts.
FBI Director Kash Patel highlighted the importance of these arrests in an interview with Fox News, stating, "These individuals were operating as part of a hostile foreign intelligence service aiming to undermine our military and institutions. Thanks to coordinated efforts with our partners, including the Naval Criminal Investigative Service, we have disrupted their operations and sent a clear warning that espionage on American soil will not be tolerated."
The criminal complaint details a timeline of recruitment beginning in 2021 when Lai reportedly introduced Chen to the MSS. In early 2022, the two allegedly coordinated a cash drop of at least $10,000 in Livermore, California, as part of their covert network's funding operations.
Investigations revealed that both men visited key naval locations, including a base in Washington State and a Navy recruitment center in San Gabriel, California. Chen is accused of photographing sensitive information such as the identities and hometowns of recruits, with many recruits listing their hometown as China, raising concerns about potential MSS recruitment targets.
Further allegations include Chen's efforts to establish social media contact with a Navy service member, which led to arranging a tour of the USS Abraham Lincoln in San Diego. Information about this individual was reportedly passed along to MSS handlers.
Court documents also indicate that both men traveled frequently to Guangzhou, China, to meet with MSS officers and discuss compensation for intelligence activities. Lai's April 2025 visit to Houston, claimed to be for retail business purposes, involved suspicious movements between Texas and California.
The charges brought against Chen and Lai include operating as unregistered agents of a foreign government. If convicted, both could face up to 10 years in prison and fines reaching $250,000.
Assistant Attorney General John Eisenberg, head of the DOJ's National Security Division, highlighted the ongoing threat posed by foreign intelligence operations. He affirmed the department's commitment to dismantling spy networks that threaten U.S. national security and the safety of American service members.
This case highlights continued efforts by the FBI, DOJ, and military investigative agencies to combat espionage and safeguard sensitive military information against foreign adversaries.
