Two Chinese nationals have appeared in federal court facing charges of acting as agents for the People’s Republic of China (PRC) without notifying the U.S. Attorney General. Yuance Chen, a legal permanent resident residing in Happy Valley, Oregon, and Liren “Ryan” Lai, who traveled to Houston on a tourist visa, were arrested following a coordinated operation by the FBI.
The defendants are accused of conducting clandestine intelligence operations on behalf of the PRC’s Ministry of State Security (MSS). These activities allegedly included facilitating cash payments for sensitive information related to U.S. national security and attempting to recruit U.S. military personnel as potential MSS assets.
Attorney General Pamela Bondi emphasized the seriousness of these actions: “This case underscores the Chinese government’s sustained and aggressive effort to infiltrate our military and undermine our national security from within.”
U.S. Attorney Craig H. Missakian highlighted the threat posed by foreign adversaries targeting U.S. national security information: “My office and the FBI remain ever vigilant in guarding against these threats to the United States.”
FBI Director Kash Patel noted that this case involved complex counterintelligence work across multiple field offices: “The FBI will continue to vigilantly defend the homeland from China’s pervasive attempts to infiltrate our borders.”
According to Assistant Attorney General John A. Eisenberg, foreign intelligence services like the MSS dedicate years to recruiting individuals within the United States: “Under my leadership, the National Security Division will continue to defend our nation and neutralize our adversaries’ clandestine spy networks.”
The criminal complaint alleges that Lai recruited Chen around 2021, with both participating in various covert operations including facilitating a dead-drop payment in Livermore, California. The complaint further details Chen’s efforts in identifying potential MSS recruits within U.S. Navy ranks.
If convicted under Title 18, United States Code, Section 951, Chen and Lai face up to $250,000 in fines and up to ten years imprisonment.
The investigation is led by the FBI San Francisco Field Office with support from other field offices and agencies including NCIS.
A criminal complaint is an allegation; all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
