Two Chinese Nationals Sentenced for Espionage Against U.S. Military

Liren Lai and Yuance Chen each received 30 months in prison for conducting covert intelligence operations on U.S. soil for China's Ministry of State Security.

Two Chinese Nationals Sentenced to 30 Months for Spying on U.S. Military

Two Chinese nationals have been sentenced to 30 months in federal prison each for operating as clandestine agents of China's intelligence service inside the United States, DOJ Justice News reports. Liren "Ryan" Lai, 40, and Yuance Chen, 39, were also ordered to serve three years of supervised release following their prison terms.

Both men pleaded guilty to conspiring to act as agents of a foreign government without notifying the Attorney General and to the underlying offense itself. Their activities, carried out at the direction of the People's Republic of China's Ministry of State Security (MSS), included facilitating covert cash payments, photographing military bases and personnel, and attempting to recruit active-duty U.S. service members as intelligence assets.

"Lai's and Chen's activities, undertaken at the direction of the PRC, were extensive and brazen," said Assistant Attorney General for National Security John A. Eisenberg. "The National Security Division is committed to holding accountable anyone who aids or abets such espionage efforts."

Operating Under MSS Direction Since 2021

According to court documents, Lai and Chen began acting as MSS agents no later than May 2021. The MSS is China's principal civilian intelligence service, responsible for both foreign intelligence collection and counterintelligence operations. Lai initially recruited Chen into the scheme and served as an intermediary between Chen and MSS officers. Chen later received assignments directly from those officers.

In January 2022, while both defendants were physically located in China, they coordinated with individuals inside the United States to execute a so-called "dead drop" — a tradecraft method that allows intelligence operatives to transfer money or materials without meeting face to face. The cash, approximately $10,000, was left inside a backpack stored in a locker at a recreational facility in Livermore, California.

Military Bases Photographed, Sailors Targeted

Beginning in 2022, Chen gathered intelligence on U.S. military installations and personnel under direction from Lai and MSS officers. He obtained photographs of Navy Base Kitsap in Bremerton, Washington, and captured photographs and video footage of military recruits and active-duty sailors inside a Navy recruiting station in Southern California. Chen also compiled personal identifying information on a U.S. Navy employee and maintained detailed biographical profiles on military personnel flagged as potential intelligence targets.

In March 2023, Lai traveled to the United States and handed Chen a cell phone designated for covert communications with the MSS — a device Chen himself described as a "state secret." Chen subsequently traveled to China in both 2024 and 2025, meeting with MSS officers and receiving new assignments focused on U.S. service members.

Phoenix Cash Drop and Arrests

In April 2025, Lai again flew from China to the United States to carry out fresh MSS assignments. The following month, the MSS directed him to travel to Phoenix, Arizona, to facilitate a second clandestine cash payment, this time approximately $20,000, in support of ongoing intelligence operations.

Lai and Chen were arrested on June 27, 2025, during a coordinated FBI counterintelligence operation. A federal grand jury in the Northern District of California returned an indictment on July 1, 2025, charging both men with conspiracy and the underlying agent offense. Lai pleaded guilty on December 12, 2025; Chen followed on February 20.

FBI and Prosecutors Warn of Continued Vigilance

"By their own admission, Chen and Lai operated as illegal agents for the Chinese government on U.S. soil, carrying out clandestine intelligence work that included making covert payments, collecting sensitive military information, and attempting to recruit American service members," said Assistant Director Roman Rozhavsky of the FBI's Counterintelligence and Espionage Division. "Let this sentencing serve as a clear warning: If you attempt to jeopardize the safety and security of our service members, our citizens, or our nation, justice will find you."

U.S. Attorney Craig H. Missakian for the Northern District of California echoed that message. "This office and our federal law enforcement partners stand watch day and night to prevent our adversaries from doing just that, and we will continue to do so," Missakian said.

The FBI San Francisco Field Office led the investigation, with assistance from the FBI's Portland, Houston, and San Diego Field Offices and the Naval Criminal Investigative Service. Prosecution was handled by the National Security Division's Counterintelligence and Export Control Section and the U.S. Attorney's Office for the Northern District of California, with additional support from U.S. Attorney's Offices in Oregon, the Southern District of Texas, and the Southern District of California.

Source: DOJ Justice News