The United States Department of Justice has charged two Chinese citizens with espionage and attempting to recruit assets within the country’s military.
According to Tuesday’s statement, Yuance Chen, 38, and Liren “Ryan” Lai, 39, are accused of operating on behalf of China’s Ministry of State Security (MSS), the country’s foreign intelligence service.
The defendants allegedly conducted various “clandestine intelligence taskings,” including facilitating payments for national security information, gathering intelligence on Navy installations, and attempting to recruit MSS operatives.
Attorney General Pamela Bondi stated that the case “underscores the Chinese government’s sustained and aggressive effort to infiltrate our military and undermine our national security from within.”
An FBI affidavit reveals that Lai was part of an MSS network designed to “travel more easily” between China and the US “to facilitate clandestine operations.” Beginning around 2021, he developed Chen, a legal permanent resident, as his asset.
After determining that Chen had military connections, Lai encouraged him to travel abroad for in-person discussions about his contacts, even offering to cover travel expenses, according to the affidavit.
The men reportedly met with MSS agents, and in 2022, they left a backpack containing $10,000 cash in a California locker as payment to other individuals for intelligence gathering.
Subsequently, Chen collected Navy-related information and transmitted it to Lai while discussing recruitment efforts directly with the MSS. This included personal details about Navy personnel. Chen traveled to San Diego to meet with a Navy employee and tour the USS Abraham Lincoln aircraft carrier.
Photos in the affidavit show Chen’s visitor badge and images of him with the employee and their child on the carrier’s deck.
The FBI characterizes such interactions as part of China’s broader military expansion campaign. The affidavit states that “The PRC government seeks blue-water naval capabilities as part of their effort to modernize their navy and establish hegemony in the South China Sea.”
“Blue-water capabilities” refers to long-distance maritime operations, contrasting with near-shore activities. The affidavit continues: “As such, the PRC government tasks and deploys the MSS to surreptitiously target the US Navy and collect intelligence.”
Both defendants face charges under the Foreign Agent Registration Act (FARA), which mandates that those working for foreign governments register with US authorities.
The government has increasingly utilized this law to combat alleged Chinese espionage activities in recent years. Beijing typically denies such allegations and accuses the US of discriminatory practices.
US Attorney Craig H Missakian commented: “These charges reflect the breadth of the efforts by our foreign adversaries to target the United States. We will continue to undertake counterespionage investigations and prosecutions, no matter how complex and sensitive, to disrupt attempts to weaken our national security.”
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