Two Chinese Nationals Charged with Spying on US Navy: DOJ Warns of Escalating Threats

Federal authorities have charged two Chinese nationals in a high-profile espionage case, accusing them of attempting to infiltrate the U.S. military and collect classified information on behalf of China’s intelligence services. The Department of Justice confirmed that Yuance Chen (38) and Liren “Ryan” Lai (39) are facing serious charges linked to national security violations.

According to the Justice Department, Chen and Lai worked under the direction of China’s Ministry of State Security (MSS), aiming to gather intelligence on U.S. Navy operations and personnel. Prosecutors allege that Chen, a U.S. permanent resident originally from China, conducted surveillance at naval bases and recruitment centers in California and Washington.

Authorities say Chen compiled detailed personal data on new Navy recruits, particularly those of Chinese heritage, and passed it to his handlers. Investigators also revealed that in 2022, a cash drop of $10,000 was left in Northern California, believed to be a payment for classified military information.

Lai, who mostly resides in China, allegedly visited the U.S. on a tourist visa to supervise Chen’s activities and help cultivate him as a long-term intelligence asset. The Chinese nationals relationship reportedly began in 2021.

Legal Consequences and Arrests

Both suspects were arrested last week — Chen in Oregon and Lai in Texas. They are charged with operating as unregistered foreign agents, a violation of the Foreign Agents Registration Act (FARA). If convicted, each faces up to 10 years in federal prison and fines up to $250,000.

US Officials Sound the Alarm

Top security officials have characterized the case as part of a wider effort by China to gain access to sensitive U.S. government and defense institutions.

“This incident reflects a broader campaign of interference by the Chinese government,” said FBI Director Kash Patel. “Their goal is to penetrate our military and gather intelligence that could weaken our national defense.”

Attorney General Pam Bondi added, “We take these threats seriously. The United States will act decisively against any attempt to infiltrate our military or compromise national security.”

No official response has yet been issued by the Chinese Embassy in Washington.

Earlier Case: Biosecurity Breach by Chinese Researchers

This espionage case follows a separate incident earlier this year involving two other Chinese nationals charged in a potential bio-terrorism plot.

In June 2025, authorities arrested Yunqing Jian (33) and Zunyong Liu (34) for allegedly attempting to smuggle a harmful agricultural pathogen into the U.S. The substance — identified as Fusarium graminearum — is known to destroy key crops such as wheat and corn and has been flagged by security experts as a possible agent of agro-terrorism.

The duo allegedly brought the fungus into the country via Detroit’s airport, with plans to study it in a Michigan-based lab. Officials say their actions posed a severe risk to America’s food security and could have triggered large-scale agricultural damage.

Both individuals now face charges of conspiracy, biological material smuggling, and immigration violations.