In a significant development, U.S. prosecutors have charged two Chinese nationals with attempting to spy on the U.S. Navy, alleging they were agents of China’s intelligence agency and recruited Navy members to leak sensitive information. According to the U.S. Justice Department, the defendants—Yuance Chen, 38, a legal U.S. resident in Oregon, and Liren “Ryan” Lai, 39, who arrived in April on a tourist visa—were acting on behalf of China’s Ministry of State Security (MSS).
Secret Dead-Drop and Navy Surveillance
Prosecutors said that the men arranged a “dead-drop payment” of at least $10,000 in a locker at a recreational facility in Northern California in 2022. This payment was made in exchange for U.S. national security information that had already been released to Chinese intelligence. The investigation found both actively seeking U.S. Navy members for recruits to spy for Beijing.
Justice Department Charges Two Individuals with Acting as Agents of the PRC Government https://t.co/84kWWYdeXZ@FBISanFrancisco @FBISanDiego @FBIPortland @FBIHouston pic.twitter.com/Z0OAbuGvSl
— FBI (@FBI) July 1, 2025
Arrests and China’s Reaction
Both were arrested last Friday and were in federal court on Monday—Chen in Portland and Lai in Houston. The Foreign Ministry in China said that it did not know the particulars of the case, but it also highlighted it would protect the rights of its citizens. “We have always opposed the hype of so-called Chinese spies,” foreign ministry spokesperson Mao Ning said.
This case reflects increasing scrutiny of foreign intelligence threats and comes amid ongoing tensions between the United States and China related to national security and defense intelligence.
