Two Chinese Citizens Charged with Espionage in the U.S.
In a significant development, two Chinese nationals have been charged with serious offenses, allegedly acting as agents of the Chinese government to collect intelligence on U.S. Navy personnel and bases. Their activities reportedly included recruiting military members for tasks related to China’s Ministry of National Security (MSS).
The Department of Justice (DOJ) announced that Yunschen, residing in Happy Valley, Oregon, and Lilenlai, who entered the U.S. on a tourist visa in April 2025, were arrested this past Friday. These individuals face allegations of various secretive intelligence operations within the U.S. on behalf of foreign interests.
The charges suggest that they were involved in recruiting potential MSS assets and gathering intelligence concerning service members and military locations. Additionally, both men are implicated in orchestrating cash payments on behalf of the MSS.
The FBI, aided by the Navy Criminal Investigation Service (NCIS), apprehended Chen in Happy Valley and Lai in Houston during the arrests.
FBI director Kash Patel remarked that these arrests demonstrate the agency’s commitment to national security and the protection of military integrity. He noted that the individuals acted on behalf of hostile foreign intelligence, which is part of a broader strategy by the Chinese Communist Party to infiltrate and jeopardize U.S. facilities.
According to the newly filed criminal charges in the Northern District of California, the Chinese government employs a range of methods to conduct intelligence activities against the U.S., with MSS playing a significant role in collecting civilian information.
Notably, the complaint states that Lai recruited Chen to work for MSS in 2021. Both men were said to have been engaged in actions involving dead-drop payments of at least $10,000 for MSS.
Documents reveal that while both individuals were in Guangzhou, China, in January 2022, they worked together to facilitate cash transactions in the U.S., leaving cash in lockers in Livermore, California.
Moreover, the DOJ claims that in 2022 and 2023, they visited several U.S. Navy locations, including the Navy Recruitment Center in San Gabriel, California. During a visit to the center, Chen reportedly photographed a message board containing the names and hometowns of naval recruits, many of whom hailed from China.
The DOJ highlighted that MSS provided Chen with directives on communication strategies for recruiting potential naval informants and how to manage employment risks. Chen also began making contact with Navy members via social media, purportedly arranging tours of USS Abraham Lincoln.
In 2024 and 2025, Chen traveled to Guangzhou to meet an MSS agent regarding compensation for specific assignments. On the other hand, Lai claimed that his visit to Houston was business-related and intended to last for two weeks, an assertion that appears questionable given his subsequent travels in the U.S.
Both Chen and Lai are accused of operating in the United States for a foreign government without notifying the U.S. Attorney General. If found guilty, they could face fines exceeding $250,000 and prison sentences of up to 10 years.
John Eisenberg, assistant director at the DOJ’s National Security Division, emphasized the government’s commitment to combating foreign intelligence threats and safeguarding U.S. national interests.
