2 Chinese nationals living in US charged in alleged spy operation targeting the military, officials say

PORTLAND, Ore. (KPTV/Gray News) - Federal authorities have charged two Chinese nationals with acting as unregistered agents of the Chinese government in an alleged plot to infiltrate the U.S. military and collect national security intelligence on behalf of China’s Ministry of State Security (MSS), a department similar to the CIA.

Officials said 38-year-old Yuance Chen and 39-year-old Liren “Ryan” Lai were arrested Friday in a coordinated FBI operation in Oregon and Texas. Both appeared in federal court Monday on charges filed in the Northern District of California.

Chen is a permanent U.S. resident living in Happy Valley, Oregon and Lai lives in Houston after entering the U.S. on a tourist visa in April.

Prosecutors allege Chen and Lai oversaw clandestine intelligence-gathering operations, including delivering cash payments via “dead drops,” collecting information on U.S. Navy service members and attempting to recruit military personnel as assets for Chinese intelligence.

According to court documents, the operation began in 2021 and included a $10,000 cash drop in California, unauthorized visits to Navy facilities and direct outreach to a Navy employee. Chen allegedly received instructions from the MSS on how to approach potential recruits and evade detection.

Court documents say Chen’s wife was working with them and was told by Chen to get the $10,000 in cash and travel from Portland to San Francisco to scout locations for the drop. Eventually, she left the cash inside a backpack in a bowling alley locker.

https://www.kcrg.com/2025/07/02/2-chinese-nationals-living-us-charged-alleged-spy-operation-targeting-military-officials-say/