Two Chinese Nationals Arrested, Accused of Espionage Targeting U.S. Navy Personnel

Two individuals believed to be working on behalf of the Chinese Communist Party’s intelligence agency have been arrested by U.S. authorities for allegedly spying on U.S. Navy service members and recruiting military personnel to assist their efforts.

The Department of Justice (DOJ) announced that Yuance Chen, residing in Happy Valley, Oregon, and Liren Lai, who entered the country on a tourist visa and was apprehended in Houston, Texas, were taken into custody last Friday. 

Both men face serious charges for acting as agents of China’s Ministry of State Security (MSS)—the country’s primary foreign intelligence service—conducting covert operations across the United States.

According to the DOJ, the pair engaged in a range of clandestine activities, including gathering sensitive information on Navy bases and personnel, facilitating cash payments through “dead drop” techniques and attempting to recruit U.S. Navy members to cooperate with the MSS.

FBI Director Kash Patel emphasized the importance of these arrests in protecting national security.

“These individuals were operating as part of a hostile foreign intelligence service aiming to undermine our military and institutions,” he told Fox News. 

“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 recruitment timeline beginning in 2021, when Lai reportedly brought Chen into the MSS fold. 

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.

Surveillance and investigations revealed that both men visited key naval locations—including a base in Washington State and a Navy recruitment center in San Gabriel, California—where Chen is accused of photographing sensitive information such as the identities and hometowns of recruits. 

The DOJ noted that many recruits listed 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, according to Fox News.

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, officially 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.

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