Two Chinese Nationals Arrested in U.S. for Espionage and Attempt to Recruit Navy Personnel

In a significant development highlighting growing concerns over foreign intelligence operations, two Chinese nationals have been arrested in the United States on charges of espionage. The men are accused of acting as agents for the Chinese government and allegedly attempting to recruit members of the U.S. Navy to serve as intelligence assets for China’s Ministry of State Security (MSS).

The individuals, identified as 38-year-old Yuance Chen and 39-year-old Liren Lai, face serious federal charges of acting illegally as agents of a foreign government. If convicted, they could each face a maximum sentence of up to 10 years in prison. Chen, a legal permanent U.S. resident, was arrested in Happy Valley, Oregon, while Lai was apprehended in Houston, Texas, after arriving in April on a tourist visa.

According to the U.S. Department of Justice, both suspects were involved in intelligence-gathering activities directed by the MSS — China's primary civilian intelligence agency responsible for counter-intelligence, foreign intelligence, and political security.

The criminal complaint outlines that Chen and Lai worked together to acquire sensitive national security-related information. They allegedly paid cash to obtain classified or restricted data and made efforts to identify and potentially recruit individuals in the U.S. Navy who could provide insider information. The suspects reportedly targeted military personnel with access to intelligence and operational details, seeking to build long-term assets for the Chinese government within the U.S. defense establishment.

The recruitment operation reportedly began in 2021 when Lai, working as an agent for the MSS, brought Chen into the network. Together, they communicated using encrypted platforms and avoided detection through sophisticated operational tradecraft commonly associated with state-backed espionage, including code names, dead drops, and limited in-person contact.

U.S. Attorney General Pamela 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.” She stressed that the Department of Justice remains committed to protecting America’s military, intelligence community, and national interests against foreign espionage.

The arrests were made following a multi-month investigation led by the FBI, which had been closely monitoring the suspects' activities. Federal agents executed search warrants and recovered evidence including electronic devices, encrypted communications, financial records, and documents pointing to coordinated efforts with Chinese intelligence handlers.

This case adds to the growing list of espionage-related incidents involving alleged Chinese operatives, reinforcing concerns about Beijing’s ongoing efforts to collect intelligence from U.S. government, military, and technological sectors. The trial is expected to proceed in federal court, where prosecutors will present detailed evidence of the defendants' coordination with the Chinese government.

Authorities have reiterated that while the case involves foreign nationals, the focus is strictly on the unlawful actions of the individuals involved, not on any specific nationality or ethnicity. The U.S. continues to prioritize counter-intelligence operations as a key part of its national defense strategy, especially in an era of rising global competition and cyber-espionage threats.