Federal authorities have charged two Chinese nationals with operating as unregistered agents of Beijing in an alleged effort to spy on U.S. military facilities and recruit American military personnel on behalf of Chinese intelligence services.

The complaint, unsealed Monday in federal court in San Francisco, outlines a range of covert activities carried out by the pair, including photographing a naval base, coordinating a cash dead-drop, and seeking to identify Navy recruits who might be willing to collaborate with Chinese intelligence.

Attorney General Pam Bondi described the charges as further evidence of China’s “sustained and aggressive effort to infiltrate our military and undermine our national security from within.” Bondi vowed that the Justice Department would expose foreign operatives and hold them accountable.

According to prosecutors, the defendants are Yuance Chen, 38, who arrived in the United States on a visa in 2015 and later obtained legal permanent residency, and Liren “Ryan” Lai, 39, who lives in China but traveled to Texas this spring to oversee the espionage scheme on behalf of China’s Ministry of State Security (MSS).

The two were arrested on charges of acting as agents of a foreign government without registering with the Justice Department as required by law. It was not immediately known if they had obtained legal representation. The Chinese embassy in Washington did not respond to a request for comment on Tuesday.

An FBI affidavit filed with the case states that Lai had been cultivating Chen as an intelligence asset since at least mid-2021. Prosecutors allege that together they organized a dead-drop payment of $10,000 in cash to another operative, and carried out surveillance at a Navy recruiting station in California and a naval base in Washington state, including taking photographs and videos sent to Chinese intelligence.

Investigators say Chen also obtained the names and hometowns of recent Navy recruits while touring a Navy installation. Many recruits listed China as their hometown, and the FBI believes that information was transmitted to Chinese authorities.

The arrests are the latest in a string of prosecutions targeting Chinese intelligence activities on American soil. In recent years, U.S. officials have charged Chinese nationals in several espionage-related cases, including five students accused of surveilling a Michigan military site in 2022, and two Navy sailors charged last year with providing classified naval operations data to Chinese handlers.

(YWN World Headquarters – NYC)