The U.S. Department of Justice (DOJ) has charged two Chinese nationals for allegedly collecting intelligence on U.S. Navy personnel and bases, as well as attempting to recruit members of the U.S. military to work for China.
According to a DOJ press release, Yuance Chen, 38, a conditional permanent resident, and Liren “Ryan” Lai, 39, who has been in the U.S. on a visitor visa since April, were arrested in Happy Valley, Oregon, and Houston Texas on June 27.
The complaint details their espionage activities conducted on behalf of the People’s Republic of China’s primary foreign intelligence agency, the Ministry of State Security (MSS).
“These activities included facilitating a ‘dead drop’ payment of cash for information relating to the national security of the United States previously provided to the MSS, gathering intelligence about U.S. Navy service members and bases, and assisting with efforts to recruit other individuals from within the U.S. military as potential MSS assets,” the statement read.
Lai, a member of an MSS network, reportedly recruited Chen in 2021. In January 2022, the two coordinated a cash dead-drop of at least $10,000 in a day-use locker at a recreational facility in Livermore, California, on behalf of the MSS.
According to the DOJ, Chen contacted a U.S. Navy employee through social media, arranged a tour of the USS Abraham Lincoln, and gathered intelligence from Navy installations and recruitment centers.
While at one recruitment center, he reportedly photographed a bulletin board listing the names and programs of recent Navy recruits, many of whom had listed China as their hometown, and is believed to have sent the images to an MSS intelligence officer in China.
The complaint also states that MSS provided Chen with instructions on how to approach potential recruits, including details about possible payments, preferred Navy assignments, and strategies to avoid detection.
Both men were charged under the Foreign Agents Registration Act,, a law that mandates individuals acting on behalf of a foreign government to register with the U.S. government.
Attorney General Pamela Bondi said the case highlights China’s persistent attempts to penetrate U.S. military ranks.
“The Justice Department will not stand by while hostile nations embed spies in our country – we will expose foreign operatives, hold their agents to account, and protect the American people from covert threats to our national security,” Bondi added.
China has not yet issued a statement regarding the accusations. However, Beijing has previously denied similar allegations, often dismissing them as politically motivated.
