Two Chinese nationals have been arrested and charged with acting as unregistered foreign agents on U.S. soil, in what federal officials describe as a brazen espionage operation targeting the United States military. The Justice Department announced Tuesday that the suspects—Yuance Chen, 38, a Chinese national and legal permanent resident of Oregon, and Liren “Ryan” Lai, 39, a Chinese national who entered the U.S. on a tourist visa in April—were arrested by the FBI on June 27.
Both men stand accused of operating within the United States on behalf of the Ministry of State Security (MSS), the primary foreign intelligence agency of the Chinese Communist Party. According to the Justice Department, Chen and Lai specifically attempted to recruit members of the U.S. Navy to serve as intelligence assets for Beijing.
Attorney General Pam Bondi emphasized the gravity of the case, stating:
“This case underscores the Chinese government’s sustained and aggressive effort to infiltrate our military and undermine our national security from within. The Justice Department will not stand by while hostile nations embed spies in our country.”
According to the criminal complaint, one of the key incidents took place in January 2022, when the suspects allegedly orchestrated a dead-drop payment in Livermore, California. A backpack containing $10,000 in cash—provided by MSS—was left in a locker at a recreational facility as payment for sensitive U.S. national security information.
FBI Director Kash Patel confirmed the arrests and highlighted the use of traditional espionage tactics, such as covert drop-offs and in-person meetings.
“The Chinese Communist Party thought they were getting away with their scheme to operate on U.S. soil, utilizing spy craft like dead drops to pay their sources,” Patel said.
Investigators allege the pair also targeted U.S. Navy recruitment operations. Chen and Lai worked together to obtain personal recruitment data from a Naval installation in Washington and a recruitment center in San Gabriel, California. The Justice Department claims Chen transmitted this information directly to an MSS handler in China.
Court filings reveal that Chen met with MSS intelligence officers in April 2024 and again in March 2025 to discuss his assignments and payment structure.
If convicted, both individuals face up to 10 years in prison and $250,000 in fines for acting as agents of a foreign government without notifying the U.S. attorney general.
