FBI Arrests Chinese Nationals Spying On U.S. Navy Facilities
The Department of Justice under President Donald J. Trump has once again sent a clear and powerful message to the Chinese Communist Party: espionage will not be tolerated on American soil.
In a high-stakes counterintelligence operation, two Chinese nationals — Yuance Chen of Happy Valley, Oregon, and Liren Lai, who entered the U.S. on a tourist visa in April 2025 — were arrested and charged with operating as unregistered agents of the People’s Republic of China. According to federal authorities, the pair were actively working on behalf of China’s notorious Ministry of State Security (MSS), gathering intelligence on U.S. Navy personnel and installations, while recruiting military members to serve as informants.
These arrests follow a multi-agency effort involving the FBI and the Naval Criminal Investigative Service (NCIS), culminating in the apprehension of Chen in Oregon and Lai in Houston.
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View Plans“Today’s arrests reflect the FBI’s unwavering commitment to protecting our national security and safeguarding the integrity of our military,” said FBI Director Kash Patel. “The individuals charged were acting on behalf of a hostile foreign intelligence service — part of the Chinese Communist Party’s broader effort to infiltrate and undermine our institutions.”
Patel praised the seamless coordination between federal law enforcement agencies, making it clear that the Trump administration’s counterintelligence strategy remains, in his words, “focused, vigilant, and relentless.”
JUST IN: 🇺🇸🇨🇳 United States arrests two Chinese nationals accused of spying on the US Navy and attempting to recruit American military personnel for Chinese intelligence. pic.twitter.com/BB440FF3Hv
— BRICS News (@BRICSinfo) July 1, 2025
According to the DOJ, the Chinese regime has ramped up its intelligence operations against the United States in recent years, with the MSS targeting both civilian and military sectors. In this case, the criminal complaint alleges that the espionage plot dates back to 2021 when Lai recruited Chen to serve as an MSS asset.
The pair reportedly traveled to Guangzhou, China, in January 2022 to coordinate a $10,000 "dead drop" cash payment, which was hidden in a public locker in Livermore, California. The cash exchange was part of a larger operation to pay U.S.-based collaborators — a clear violation of American law and sovereignty.
Throughout 2022 and 2023, the duo visited a naval facility in Washington State and a Navy recruitment center in San Gabriel, California. There, Chen reportedly photographed bulletin boards listing Navy recruits, many of whom had “China” listed as their hometown — a key focus for Chinese intelligence. The DOJ confirmed that the sensitive photos were sent directly to MSS agents.
As part of the plot, Chen communicated with at least one U.S. Navy servicemember and arranged a tour of the USS Abraham Lincoln in San Diego, allegedly transmitting information about that individual back to Beijing.
The complaint also details that Chen met with Chinese intelligence officers in Guangzhou as recently as March 2025 to discuss payment terms for his continued espionage activities. Lai, meanwhile, entered Houston under the guise of promoting his online retail business.
Both men have been charged with acting as foreign agents inside the United States without notifying the Attorney General — a federal offense punishable by up to 10 years in prison and a $250,000 fine.
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View PlansThis case is yet another reminder of the national security threats posed by the CCP and underscores the urgency of President Trump’s tough-on-China agenda. For years, Beijing has exploited America’s openness — infiltrating academic institutions, stealing industrial secrets, and now attempting to compromise our military from within.
With President Trump back in office, the gloves are off.