In a significant operation led by the Federal Bureau of Investigation (FBI), two Chinese nationals have been arrested on charges of espionage aimed at U.S. military installations and personnel. The FBI announced the arrests on Tuesday, stating that Yuance Chen, 38, and Liren “Ryan” Lai, 39, are implicated in activities that serve the interests of the Ministry of State Security (MSS), China’s principal foreign intelligence agency.
The suspects made their initial court appearances on Monday in federal court in Portland, Oregon, and Houston. Their criminal charges originated from the Northern District of California, focusing on espionage offenses linked to their operations within the United States.
Chen, a legal permanent resident of the U.S. residing in Happy Valley, Oregon, and Lai, who arrived in Houston on a tourist visa from China in April, were taken into custody on Friday. According to the FBI, they allegedly facilitated operations that included a “dead drop” cash payment to retrieve sensitive information concerning U.S. national security.
Investigative reports suggest that their efforts were aimed at collecting intelligence regarding U.S. Navy personnel and bases, as well as attempting to recruit individuals from within the military for the MSS. This coordinated effort underscores the extensive nature of Chinese espionage activities against U.S. interests, a concern that has escalated in recent years.
FBI Director Kash Patel praised the collaboration between various FBI offices, including those in San Francisco, Portland, Houston, and San Diego, stating that the operation exemplifies exceptional counterintelligence work. Previous investigations into Chinese espionage have led to other cases, such as the arrest of a San Diego sailor accused of leaking military secrets to a Chinese intelligence officer two years ago.
The details unveiled in the criminal complaint further reveal how Lai recruited Chen roughly four years ago to work for the MSS. In January 2022, while in Guangzhou, they allegedly coordinated the transfer of at least $10,000, utilizing a day-use locker in Livermore, California, to conceal the cash.
Following this incident, the duo continued their espionage efforts, focusing on identifying potential recruits within the U.S. Navy. Reports indicate that in 2022 and 2023, Chen was tasked by Lai to visit a naval installation in Washington State and a Navy recruitment center in San Gabriel, where he purportedly collected personal information about military recruits to relay to MSS officers in China.
Moreover, Chen allegedly received instructions from the MSS on how to effectively engage with sailors while minimizing the risk of discovery. He is also accused of making contact with a Navy employee through social media, subsequently sharing details about that individual with the MSS.
Both Chen and Lai face serious charges under a federal statute that prohibits individuals from acting as agents of a foreign government without proper notification to the U.S. attorney general. If convicted, they could each serve up to ten years in prison and be subject to fines of up to $250,000.
The investigation is being led by the FBI’s San Francisco Field Office, with additional support from the Naval Criminal Investigative Service. The arrests highlight ongoing concerns over foreign espionage and its potential implications for national security.
image source from：timesofsandiego
