Chinese Operatives Spent Years Spying On Navy Bases In US, DOJ Alleges

Two Chinese nationals face federal espionage charges after allegedly running a years-long spy operation targeting U.S. Navy personnel and bases on behalf of Beijing’s intelligence agencies.

The FBI arrested Yuance Chen and Liren “Ryan” Lai on Friday following a sprawling, years-long federal investigation that uncovered dead drops of cash at California recreation centers and suspicious photography at Navy recruitment offices, according to court documents. The filing reveals the methods by which Chinese operatives are allegedly attempting to penetrate the Navy’s sailors and facilities.

“Two Chinese nationals were caught spying on our Navy and trying to recruit American service members for the CCP’s intel service. Our FBI won’t stand for it. We tracked them, we stopped them, and we’re not done yet,” FBI Director Kash Patel wrote on X. “Espionage on U.S. soil will be met with full force.”

Neither the FBI or the Justice Department immediately responded to requests for comment.

Federal prosecutors hit the pair with one count each of acting as unregistered agents of a foreign government, a charge that carries up to ten years in prison and a $250,000 fine. Chen — a lawful resident since 2015 — was picked up outside his home in Happy Valley, Oregon. Naval Criminal Investigative Service agents arrested Lai — who overstayed his tourist visa — in Houston during a coordinated sweep on Friday morning. They made initial appearances Monday in Portland and Houston, and prosecutors say they will seek pre-trial detention, calling both defendants serious flight risks.

The now-unsealed complaint says Lai first recruited Chen during a 2021 trip to Guangzhou, where Ministry of State Security (MSS) offices laid out “tasking” orders, cash payments and cover stories. The duo allegedly arranged a $10,000 backpack dead-drop in a Livermore, California, locker in January 2022 to bankroll future operations.

The MSS — the civilian service responsible for foreign espionage and domestic counterintelligence — has steadily expanded its reach over the past two decades, U.S. officials