Two Chinese nationals, Yuance Chen and Liren 'Ryan' Lai, have been charged with espionage for allegedly spying on behalf of China, including photographing a naval base and attempting to recruit military members.

Investigators believe Lai had been grooming Chen as an intelligence asset since at least mid-2021, coordinating a cash dead-drop of $10,000 for China's Ministry of State Security (MSS).

Chen, who became a lawful permanent resident in 2015, and Lai, who was supervising operations in Texas, are accused of facilitating espionage activities.

The Department of Justice (DOJ) has underscored the ongoing threat from foreign intelligence services like the MSS, which are actively seeking to infiltrate U.S. institutions.

The DOJ stated that the two men were involved in recruiting military members and facilitating a dead-drop cash payment of at least $10,000 for the MSS.

Attorney General Pam Bondi emphasized the threat posed by foreign espionage, asserting that the Justice Department will actively expose and hold accountable foreign agents involved in spying.

The case was filed in federal court in San Francisco and unsealed on July 1, 2025, highlighting ongoing concerns about Chinese intelligence activities targeting U.S. military capabilities.

If convicted, Chen and Lai could face fines up to $250,000 and a maximum of 10 years in prison for acting as agents of a foreign government without notifying U.S. authorities.

According to a criminal complaint, Chen and Lai collaborated in January 2022 in Guangzhou, China, for a cash drop involving other U.S. operatives.

The MSS allegedly instructed Chen on how to recruit potential assets and communicate with Navy personnel, including arranging a tour of the USS Abraham Lincoln.