Two Chinese nationals, Yuance Chen and Liren Lai, were arrested for allegedly spying on U.S. Navy personnel and military bases. Chen, a resident of Happy Valley, Oregon, and Lai, who entered the U.S. on a tourist visa in April 2025, face serious charges for working as agents of China’s Ministry of State Security (MSS).

Espionage Operations

The Department of Justice (DOJ) confirmed that both men were involved in espionage activities aimed at recruiting service members and gathering intelligence on U.S. Navy installations. The arrests, carried out by the FBI, took place on June 27, 2025, with Chen apprehended in Oregon and Lai in Houston.

Chen and Lai are accused of facilitating a "dead drop" payment, arranging a $10,000 payment on behalf of MSS, and assisting in the recruitment of Navy personnel. Their operation allegedly spanned multiple U.S. military locations, including naval bases in Washington State and California. Chen also took photographs of a U.S. Navy recruitment bulletin board containing personal information about recruits and transmitted these images to MSS intelligence officers.

Legal Charges and Penalties

Both men are charged with operating as agents of a foreign government without notifying the U.S. Attorney General. If convicted, they face up to 10 years in prison and a fine of up to $250,000.

FBI’s Statement on National Security

The arrests are part of a larger effort by the U.S. government to combat espionage activities, particularly from China, which has been accused of using foreign intelligence services to infiltrate U.S. institutions. FBI Director Kash Patel expressed the agency’s commitment to safeguarding U.S. national security and preventing foreign intelligence networks from operating within the country.