Chinese Agents Spent Years Gathering Intelligence on US Navy Bases, DOJ Claims

Chinese Nationals Charged in Spy Case Targeting U.S. Navy

Two citizens from China are facing federal charges for allegedly running a spy operation aimed at U.S. Navy officials and bases on behalf of Beijing’s intelligence agency.

The FBI arrested Yuance Chen and Liren “Ryan” Lai after a broad investigation revealed suspicious cash transactions and photos at a California recreation area. The court documents outline attempts by Chinese operatives to infiltrate naval personnel and facilities.

“These two individuals spied on the Navy and made efforts to recruit American service members for the Chinese Communist Party’s intelligence operations. The FBI doesn’t stand for that. We found them, and we put a stop to it,” a spokesperson noted.

However, both the FBI and the Justice Department did not provide immediate comments when asked for reaction.

Federal prosecutors have charged Chen and Lai with one count each of acting as unregistered agents of a foreign government, which could lead to up to ten years in prison and fines of $250,000. Chen, a legal resident since 2015, was arrested outside his home in Happy Valley, Oregon. Lai, who overstayed his tourist visa, was apprehended in Houston during a coordinated operation. Both are scheduled to appear in court in Portland and Houston, where prosecutors plan to argue that they are serious flight risks and seek pre-trial detention.

According to prior complaints, Lai had initially recruited Chen during a trip to Guangzhou in 2021. At that time, the Ministry of State Security (MSS) was allegedly involved in organizing covert assignments, financial payments, and creating cover stories. They are said to have planned a cash drop of $10,000 in a California locker in January 2022 to fund future espionage activities.

The MSS has reportedly expanded its operations focusing on foreign espionage and domestic intelligence monitoring in the last two decades, with U.S. authorities stating that agents often rely on ethnic communities abroad for assistance.

Investigations indicated that from 2022 through 2023, Chen visited Navy installations and recruiting offices, taking photos of bulletin boards and sending them to MSS contacts. He reportedly formed an online connection with a sailor who later enlisted, even gaining a tour of the USS Abraham Lincoln in San Diego in January 2025, then sending that sailor’s personal information to Guangzhou within hours.

Chen is believed to have met further with MSS officials in Guangzhou in April 2024 and March 2025. Meanwhile, Lai traveled extensively across the Southwest U.S. during his stay this spring, which aligns with operational patterns.

Attorney General Pam Bondy stated, “This situation highlights the ongoing and proactive efforts of the Chinese government to penetrate our military and compromise national security from within. We must expose foreign operatives, apprehend agents, and safeguard the American public from hidden threats.”