Two Chinese nationals were arrested for allegedly acting as covert agents of the Chinese Communist Party inside the United States, attempting to recruit American military personnel to spy for Beijing, the Justice Department announced Tuesday.
The FBI apprehended 38-year-old Yuance Chen, a legal permanent resident living in Oregon, and 39-year-old Liren “Ryan” Lai, who entered the U.S. on a tourist visa in April. Both are accused of operating as unregistered foreign agents on behalf of China’s Ministry of State Security (MSS), the regime’s primary intelligence service.
“These arrests highlight the Chinese government’s relentless efforts to infiltrate our military and compromise our national security,” said Attorney General Pam Bondi. “We will expose foreign operatives and defend our nation from covert threats—no matter where they hide.”
According to the criminal complaint, Chen and Lai sought to recruit members of the U.S. Navy to act as assets for the Chinese government. In one instance, the pair allegedly arranged a dead-drop payment—leaving $10,000 in a backpack at a recreational facility in Livermore, California—in exchange for sensitive national security information.
FBI Director Kash Patel said the case reveals how the Chinese Communist Party uses traditional spy craft, including dead drops, to run espionage operations inside the U.S. “They thought they could get away with it. They were wrong.”
The suspects also reportedly targeted Navy installations in Washington and California, with Chen stealing recruitment data and forwarding it to Chinese intelligence officials overseas. The Justice Department said Chen met with MSS officers as recently as March to coordinate assignments and discuss compensation.
If convicted, both men face up to 10 years in prison and $250,000 in fines.