The pair were accused of helping to identify potential recruits for Chinese intelligence within the ranks of the U.S. Navy.
Two Chinese nationals have been arrested for allegedly spying on U.S. Navy facilities and attempting to recruit military personnel on behalf of China’s intelligence services, the U.S. Department of Justice (DOJ) announced on July 1.
The FBI arrested Yuance Chen, 38, and Liren “Ryan” Lai, 39, on June 27 in Happy Valley, Oregon, and Houston, respectively.
According to a criminal complaint filed in the U.S. District Court for the Northern District of California, both men face charges related to conducting clandestine intelligence operations on behalf of China’s Ministry of State Security (MSS).
“This case underscores the Chinese government’s sustained and aggressive effort to infiltrate our military and undermine our national security from within,” Attorney General Pam Bondi said in a statement.
The complaint states that Chen entered the United States on a tourist visa in 2015 and was granted conditional permanent residency through marriage in 2022. That same year, Chen and his wife—identified as “Associate #1”—traveled to Washington state, where they allegedly took photographs of sensitive areas at Naval Base Kitsap.
Chen was also directed to photograph a Navy recruitment center in San Gabriel, California, according to the complaint. While at the center, Chen and “Associate #1” allegedly took photos of bulletin boards listing the full names, programs, hometowns, and recruiter details of new U.S. Navy enlistees, in what the DOJ described as an attempt to help identify potential MSS assets.
“A majority of the recruits depicted in the photographs listed their hometown as China,” the document said, adding that those photos were transferred to someone suspected to be an MSS officer.
Lai, meanwhile, arrived in the United States via Houston in April on a business visa. He is accused of recruiting Chen in 2021 to work for the MSS.
In January 2022, the two men allegedly coordinated a “dead drop” operation in Livermore, California, delivering at least $10,000 in cash on behalf of the MSS, according to the DOJ. The money was allegedly left in a backpack in a day-use locker at a local gym.
By Bill Pan
