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Jan 15, 2026

FBI Arrests Two Chinese Nationals Over Espionage Plot Targeting U.S. Navy Facilities

Federal authorities have apprehended two Chinese nationals accused of operating as covert agents for the People’s Republic of China, allegedly tasked with gathering intelligence on U.S. Navy personnel and infiltrating military installations.

Allegations of Clandestine Activity

The Department of Justice (DOJ) announced the arrests of Yuance Chen, a resident of Happy Valley, Oregon, and Liren Lai, who recently entered the U.S. via Houston on a tourist visa in April 2025. According to the criminal complaint, both men worked under the direction of China’s Ministry of State Security (MSS), the nation’s primary foreign intelligence agency.

The duo is charged with conducting unauthorized intelligence operations on American soil, which included recruiting military members as assets and managing "dead-drop" cash payments to fund their activities.

Surveillance and Infiltration Tactics

NCIS: NAVAL CRIMINAL INVESTIGATIVE SERVICE

The investigation, supported by the Naval Criminal Investigative Service (NCIS), revealed a series of sophisticated efforts to compromise U.S. naval security:

  • Financial Coordination: As early as 2022, the suspects reportedly coordinated a $10,000 "dead-drop" payment in Livermore, California, following meetings with MSS handlers in Guangzhou.

  • Targeting Navy Recruits: In 2022 and 2023, the pair visited a Navy recruitment center in San Gabriel, California. Chen allegedly photographed bulletin boards containing personal data of recruits—specifically noting those of Chinese descent—and transmitted this information to intelligence officers in China.

  • Asset Manipulation: The DOJ alleges that the MSS provided Chen with specific scripts to use when approaching potential recruits, offering guidance on payment discussions and how to avoid detection.

  • Unauthorized Access: Using social media to build a rapport with a Navy service member, Chen successfully secured a tour of the USS Abraham Lincoln in San Diego, later reporting observations from the vessel back to the MSS.

Official Response

FBI Director Kash Patel emphasized that the arrests are a testament to the bureau’s "unwavering commitment" to national security.

"The individuals charged were acting on behalf of a hostile foreign intelligence service—part of a broader effort to infiltrate and undermine our institutions," Patel stated. "The United States will not tolerate espionage on American soil. Our counterintelligence operations remain focused, vigilant, and relentless."

Legal Consequences

The criminal complaint further details that Chen traveled to China as recently as March 2025 to discuss compensation for his assignments. Meanwhile, Lai claimed his travel to Houston was for an online retail business, a claim investigators believe was a cover for his intelligence work.

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