Justice Department Charges Two Chinese Nationals with Espionage for Beijing

Two Chinese nationals have been charged with spying in the United States on behalf of the Chinese government, including photographing a U.S. naval base, coordinating covert cash exchanges, and attempting to recruit American military personnel to work for Chinese intelligence.The case, filed in federal court in San Francisco and unsealed on Monday, marks the latest in a string of Justice Department actions aimed at disrupting what officials describe as China’s persistent efforts to gather secret intelligence on U.S. military capabilities. The charges come two years after a high-profile incident involving a Chinese surveillance balloon that was shot down off the coast of South Carolina.“This case highlights the Chinese government’s ongoing and aggressive attempt to infiltrate our military and undermine national security from within,” said Attorney General Pam Bondi in a statement. “The Justice Department will not allow foreign adversaries to embed spies in our country. We will expose them, prosecute their agents, and defend the American people from these covert threats.”The two men charged are Yuance Chen, 38, who entered the U.S. on a visa in 2015 and later became a lawful permanent resident, and Liren “Ryan” Lai, 39, who lives in China but traveled to Texas this spring to oversee espionage operations for China’s Ministry of State Security (MSS).Both men were arrested for allegedly acting as unregistered foreign agents of China — a violation of U.S. law. It was unclear as of Tuesday whether either defendant had legal representation. The Chinese embassy in Washington did not respond to a request for comment.According to an FBI affidavit, Lai began grooming Chen as an intelligence asset as early as mid-2021. Their espionage activities allegedly included a coordinated cash dead-drop of at least $10,000 to another operative working under MSS direction. The pair also conducted surveillance of a Navy recruiting station in California and a naval base in Washington state, capturing photos and videos that investigators believe were sent back to Chinese intelligence officials.Authorities say Chen and Lai discussed targeting Navy personnel for recruitment. During a tour of a Navy installation, Chen allegedly photographed rosters containing names and hometowns of recent recruits — many of whom listed Chinese cities as their places of origin — and sent this information to China, according to the FBI.This case is part of a broader crackdown on Chinese intelligence-gathering efforts in the United States. In a separate incident last year, five Chinese nationals were charged after being discovered near a remote Michigan military site, allegedly trying to cover their tracks after being confronted.Additionally, in 2023, two U.S. Navy sailors were charged with passing classified information to China, including details of military operations, war exercises, and sensitive technical data.