Two Chinese citizens face serious charges for allegedly collecting intelligence on U.S. Navy service members and bases and attempting to recruit other military members as spies for China.
Yuance Chen, a resident of Happy Valley, Oregon, and Liren Lai, who entered Houston on a tourist visa in April, were apprehended on Friday, according to the Department of Justice (DOJ).
Both are accused of managing and executing multiple covert intelligence operations in the United States on behalf of China’s Ministry of State Security (MSS).
In their communications, Lai asked Chen if he was a reservist and whether there were any “bases near [his] area.” In July 2021, Lai asked Chen to travel to Macau or China for an in-person meeting and offered to pay for the airfare.
In August 2021, Lai explained to Chen that, when performing the job, he would need to return to meet “our boss,” as “a big project demands cautiousness.”
In January 2022, while in Guangzhou, China, the pair allegedly collaborated to facilitate a payment of at least $10,000 on behalf of the MSS.
The MSS indicated that the payment could be made in one of two ways. One option was to have “reliable friends” deposit money via an ATM into the bank account of a trusted individual who would not question the source of the funds.
Alternatively, the MSS described an “old way”—a “dead drop” tradecraft method used to pass money between two individuals via a secret location.
The pair executed the “dead drop” operation, leaving a backpack containing the cash in a day-use locker in Livermore, California.
Between April 2022 and April 2025, Chen and Lai, acting under the direction of MSS intelligence officers, continued to serve as agents for the Chinese regime. Specifically, Chen collected information about the U.S. Navy and is believed to have sent it to Lai for transmission to the MSS.
For example, in May 2023, Chen allegedly took photos of a bulletin board displaying the names, programs, and hometowns of Navy recruits, with most recruits listing “China” as their hometown.
The DOJ also alleged that an MSS intelligence officer provided Chen with instructions on what to speak to potential military recruits, mentioning two individuals identified as “Pig Boy” and “Guangzhou Boy.”
The MSS officer further instructed Chen on the “training” of potential new recruits and the payment for their “assignments.”
Chen finally connected with a Navy member via social media and organized a tour of the USS Abraham Lincoln in San Diego with the individual. The complaint further said Chen transmitted this person’s information to the MSS.
According to the criminal complaint, the Chinese regime employs various strategies to gather intelligence on military, scientific, and technical data. The MSS and its regional bureaus conduct secret and covert human intelligence operations, targeting the United States as a primary focus.
