2 Chinese nationals charged with spying on U.S. military for Beijing

Two Chinese nationals have been arrested in the United States for secretly working on behalf of China’s intelligence agency, allegedly trying to spy on the U.S. military and collect sensitive information, according to federal prosecutors.

The suspects—Yuance Chen, 38, of Happy Valley, Oregon, and Liren “Ryan” Lai, 39, who entered the U.S. from China on a tourist visa—were arrested Friday during a coordinated FBI operation across multiple states. They made their initial court appearances Monday in Portland, Oregon, and Houston, Texas, respectively.

According to the U.S. Attorney’s Office for the Northern District of California, Chen and Lai are accused of carrying out clandestine assignments on behalf of Beijing’s Ministry of State Security (MSS), China’s primary civilian intelligence agency.

The complaint alleges they used dead drops to deliver cash payments, gathered intelligence on U.S. Navy personnel and installations, and sought to recruit other individuals within the military as potential assets for the Chinese government.

Prosecutors said the scheme dates back to 2021, when Lai allegedly recruited Chen to assist with MSS operations. In January 2022, the pair facilitated a dead drop involving $10,000 in cash at a facility in Livermore, California, in exchange for information of national security interest.

In the years that followed, Chen allegedly visited U.S. Navy sites in Washington and California, photographed recruitment materials, and maintained communications with Chinese intelligence officers.

The complaint states that Chen contacted a Navy employee through social media, arranged a tour of the USS Abraham Lincoln, and provided personal details about the individual to the MSS. He also allegedly met with Chinese operatives in Guangzhou in 2024 and 2025 and was instructed on how to communicate with potential recruits and avoid detection.

“This case underscores the Chinese government’s sustained and aggressive effort to infiltrate our military and undermine our national security from within,” said Attorney General Pamela Bondi. “The Justice Department will not stand by while hostile nations embed spies in our country.”

Chen and Lai are charged with acting as unregistered agents of a foreign government, a violation that carries a maximum sentence of 10 years in prison and a $250,000 fine. The investigation was led by the FBI San Francisco Division with assistance from FBI field offices in Portland, Houston, and San Diego, as well as the Naval Criminal Investigative Service.