Two Chinese nationals have been charged in the United States for trying to recruit American military personnel to spy for China. U.S. officials say the men worked with China’s Ministry of State Security (MSS) to collect secret information from Navy bases and to find possible recruits within the U.S. Navy.
The Justice Department said the suspects are Yuance Chen, 38, from Oregon, and Liren “Ryan” Lai, 39, who came to Houston from China in April on a tourist visa. Both were arrested last Friday and appeared in federal court this week.
Prosecutors say the men acted as agents for the Chinese government. In 2022, they allegedly arranged a secret payment of at least $10,000. The money was left in a locker at a recreational center in Northern California. Officials say the payment was in exchange for U.S. national security information that had already been passed to Chinese intelligence.
The Justice Department did not name the source of the secret information. It also did not say which Navy members the men tried to contact.
After the 2022 payment, the two suspects continued working for the MSS, U.S. authorities claim. They focused on identifying more U.S. Navy members who might be willing to give information to China.
Law enforcement described their methods as classic spy tactics. These included using “dead drops” — secret locations where one person leaves something to be picked up by another without meeting. In this case, the dead drop was a locker used to transfer the cash payment.
FBI Director Kash Patel said the Chinese government believed it could carry out secret operations on American soil. He added that these efforts included using spy tools to secretly pay sources.
Chen is a legal permanent resident of the United States. He lives in Happy Valley, Oregon. Lai entered the U.S. just months ago, and his arrival in April suggests that the operation may have been ongoing.
A spokesperson for the Chinese Embassy, Liu Pengyu, told Reuters that he had no details about the case. He said the accusations were based on “assumptions and speculations.” Liu also accused the U.S. of having double standards when it comes to intelligence activities.
The charges against Chen and Lai come amid growing tensions between the United States and China over national security. Both countries have accused each other of spying. In recent years, U.S. officials have warned of increased Chinese efforts to collect sensitive information through cyberattacks, human intelligence, and other means.
The case also shows how foreign agents may try to target military members with access to valuable information. U.S. law enforcement continues to monitor and stop such efforts.
While no U.S. Navy members have been named in this case, the Justice Department said it remains focused on protecting military secrets and stopping foreign influence.
The arrests of Chen and Lai are part of a wider effort to respond to national security threats. Officials say that even though the suspects used basic spy tools, their actions posed a serious risk.
The investigation is ongoing. Both suspects face federal charges for acting as unregistered agents of a foreign government. If convicted, they could face prison time.
This case shows how foreign powers continue to try to reach into U.S. institutions, even using direct payments and spy tactics. It also highlights the importance of keeping military secrets safe and the challenges faced by security officials in doing so.
