5 July, 2025
us-charges-two-chinese-nationals-with-espionage-in-military-infiltration-case

Two Chinese nationals have been charged with espionage within the United States, accused of gathering intelligence on behalf of Beijing. The charges, filed in federal court in San Francisco and unsealed on Monday, allege that the individuals took photographs of a naval base, coordinated a cash dead-drop, and attempted to recruit military personnel to work for Chinese intelligence.

This development follows a series of actions by the Justice Department aimed at countering what officials describe as ongoing efforts by the Chinese government to clandestinely collect intelligence on American military capabilities. The case highlights the persistent threat posed by foreign espionage, a concern that was dramatically illustrated two years ago when a Chinese surveillance balloon was shot down off the coast of South Carolina.

Details of the Espionage Case

Attorney General Pam Bondi emphasized the gravity of the situation, stating,

“This case underscores the Chinese government’s sustained and aggressive effort to infiltrate our military and undermine our national security from within.”

The Justice Department has vowed to continue exposing foreign operatives and protecting national security.

The defendants, identified as Yuance Chen, 38, and Liren “Ryan” Lai, 39, face charges of acting as unregistered foreign agents. Chen, who entered the US on a visa in 2015 and later became a lawful permanent resident, and Lai, who resides in China but traveled to Texas this spring, are accused of overseeing clandestine operations for China’s Ministry of State Security (MSS).

Espionage Activities and Arrest

According to an FBI affidavit, Lai has been cultivating Chen as a Chinese intelligence asset since at least mid-2021. Their activities reportedly included arranging a dead-drop of $10,000 in cash and conducting surveillance of a Navy recruiting station in California and a Navy base in Washington state. Investigators believe the duo sent photographs and videos to Chinese intelligence, and discussed recruiting Navy employees to work for China.

During a tour of a Navy installation, Chen allegedly obtained photographs of names and hometowns of recent recruits, many of whom listed China as their hometown. This information is believed to have been relayed to China, according to the FBI.

Historical Context and Ongoing Concerns

This case is part of a broader pattern of prosecutions targeting Chinese intelligence-gathering efforts, particularly those involving the military. Last year, the Justice Department charged five Chinese nationals with lying and attempting to obscure their activities near a Michigan military site. More recently, in 2023, two Navy sailors were charged with providing sensitive military information to China, including details on wartime exercises and naval operations.

The Justice Department’s actions reflect a heightened awareness and response to the threat of foreign espionage, particularly from China. These cases underscore the complex and evolving nature of international intelligence operations and the challenges faced by US authorities in safeguarding national security.

Implications and Future Steps

The charges against Chen and Lai underscore the ongoing threat posed by foreign espionage and the need for vigilance in protecting sensitive military information. As the US continues to navigate its relationship with China, cases like this highlight the delicate balance between international diplomacy and national security.

The Justice Department’s commitment to prosecuting foreign agents demonstrates a proactive approach to countering espionage threats. Moving forward, experts suggest that increased cooperation between intelligence agencies and the military will be crucial in identifying and mitigating potential threats.

As the case progresses, it will be closely watched as an indicator of the US’s ability to address espionage activities and protect its military capabilities from foreign interference.