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Feb 14, 2026

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

PORTLAND, Oregon — Federal prosecutors in the United States have brought serious charges against two Chinese nationals accused of secretly working on behalf of China’s intelligence services in an effort to gather sensitive information related to the U.S. military.

Authorities say the case represents a coordinated attempt to infiltrate American defense circles and obtain national security intelligence for China.

According to officials, 38-year-old Yuance Chen and 39-year-old Liren Lai — who also reportedly used the name Ryan Lai — were arrested on Friday as part of a coordinated operation conducted by the Federal Bureau of Investigation.

The arrests took place in Oregon and Texas following a lengthy investigation by federal authorities.

Both men appeared in federal court on Monday after charges were filed in the Northern District of California.

Prosecutors accuse them of acting as unregistered agents of the Chinese government while conducting covert intelligence operations linked to the Ministry of State Security, China’s main civilian intelligence organization, which plays a role similar to that of intelligence agencies in other major countries.

Authorities say Chen is a permanent resident of the United States and has been living in Happy Valley, Oregon.

Lai, meanwhile, was reportedly residing in Houston after entering the United States earlier this year on a tourist visa in April.

Federal investigators claim the two men were involved in a long-running effort to gather information related to the U.S. Navy and to potentially recruit American military personnel to provide sensitive information.

According to prosecutors, the activities began as early as 2021 and involved a number of covert methods often associated with intelligence operations.

One of those methods allegedly included the use of “dead drops,” a classic espionage technique in which cash or materials are secretly left at a predetermined location for another person to retrieve later.

Court documents state that investigators uncovered evidence of a $10,000 cash payment that was delivered through such a method in California.

FBI agents

The case documents describe how Chen allegedly received detailed instructions from handlers connected to Chinese intelligence.

Those instructions reportedly included guidance on how to approach potential contacts within the U.S. military and how to avoid attracting attention from law enforcement.

Prosecutors also allege that Chen attempted to build relationships with individuals connected to the United States Navy.

The goal, according to investigators, was to obtain sensitive information regarding personnel and operations that could be valuable to foreign intelligence services.

In one instance described in court filings, Chen and associates allegedly visited naval facilities without authorization and attempted to establish contact with a Navy employee.

Authorities say these actions raised serious concerns about potential attempts to gain access to restricted information or recruit insiders.

Court records also indicate that Chen’s wife may have unknowingly assisted with certain aspects of the operation.

Investigators say Chen instructed her to retrieve $10,000 in cash and travel from Portland to San Francisco to locate a suitable drop site.

According to prosecutors, the cash was eventually placed inside a backpack and left in a locker at a bowling alley, where it could later be retrieved.

Officials say such methods are commonly used in espionage operations because they allow individuals to exchange money or materials without direct contact.

U.S. Attorney General Pam Bondi commented on the case, describing it as a serious attempt to undermine American national security.

FBI Arrests Two Chinese Citizens Accused of Spying on U.S. Navy

“These arrests expose a brazen effort to undermine our national security from within,” Bondi said in a statement.

“We will not tolerate foreign intelligence operations targeting our military and national defense systems.”

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