FIRST ON FOX: Two Chinese nationals face serious charges after allegedly working as agents of the People’s Republic of China’s government to collect intelligence about U.S. Navy members and bases. The FBI arrested Yuance Chen and Liren Lai, who are accused of recruiting assets for China’s Ministry of State Security (MSS), facilitating cash payments, and carrying out various clandestine intelligence tasks in the U.S. The arrests took place with the help of the Naval Criminal Investigative Service (NCIS).
The Department of Justice (DOJ) alleges that Chen, residing in Happy Valley, Oregon, and Lai, who traveled to Houston on a tourist visa in April 2025, were apprehended on Friday. Both are accused of operating on behalf of the MSS, which is part of the Chinese Communist Party’s broader effort to infiltrate and undermine U.S. institutions. According to the DOJ’s criminal complaint, the MSS conducted various intelligence activities, including gathering information on civilians and conducting foreign intelligence operations.
The FBI’s Director, Kash Patel, commented on the arrests, stating that they reflect the agency’s commitment to national security. He emphasized that the individuals were acting on behalf of a hostile foreign intelligence service and that the U.S. will not tolerate espionage on American soil. The DOJ also noted that the MSS provided Chen with instructions on how to interact with potential recruits, including payment methods and preferred Naval assignments.
Lai and Chen were allegedly in Guangzhou, China, in January 2022, when they organized a dead-drop payment of at least $10,000. The operation involved leaving a backpack with cash at a day-use locker in Livermore, California. They continued their activities and identified Navy personnel who might be willing to work for the MSS. They also visited a U.S. Naval installation in Washington State and a recruitment center in San Gabriel, California, where Chen took photographs of a bulletin board containing information about Navy recruits, which he sent to an MSS intelligence officer in China.
The DOJ added that the MSS gave Chen specific guidelines on how to approach potential recruits, including methods to minimize the risk of detection. Chen ultimately communicated with a Navy member on social media, arranged for a tour of the USS Abraham Lincoln in San Diego, and shared information about the employee with the MSS. In April 2024 and March 2025, Chen met with MSS officers in Guangzhou to discuss payment for specific tasks. Lai, who claimed his visit to Houston was for business, was apprehended on May 9, 2025, after being seen traveling to California and back to Texas.
If convicted, both men could face fines up to $250,000 and up to 10 years in prison. Assistant Attorney General John Eisenberg of the DOJ’s National Security Division stated that the National Security Division will continue to defend the nation by exposing adversarial spy networks. This incident highlights the ongoing efforts to combat foreign interference in U.S. military and intelligence operations.