The FBI has nabbed two Chinese nationals, including one permanent US resident, in what was described as a plot to collect American military secrets to relay back to the Chinese Ministry of State Security (MSS), with the Department of Justice confirming that the two men facilitated a “dead drop” payment of thousands of dollars in cash in exchange for national security intel.
For context, on June 27, 2025, Yuance Chen, a Chinese national and legal permanent resident living in Oregon, along with Liren Lai, another Chinese national, were arrested on charges of acting as agents of the People’s Republic of China “without prior notification to the Attorney General.” According to the Department of Justice, the two men were paid by the Ministry of State Security to collect information from the United States Military.
Furthermore, the DOJ reported that the two Chinese nationals had worked together starting in January 2022 to “help identify potential assets for MSS recruitment within the ranks of the U.S. Navy.” The Justice Department explained that the two “obtained photographs of a bulletin board containing the names, programs, and hometowns of recent Navy recruits, the majority of whom listed their hometown as ‘China,’ which he appears to have transmitted to an MSS intelligence officer in China.”
In addition, according to the Justice Department, Chen and Lai had “received instruction from the MSS” regarding how to recruit other Chinese nationals to their cause. Furthermore, the DOJ accused Chen of traveling to China and meeting with MSS intelligence officers “in order to discuss compensation and specific taskings.”
In a July 1, 2025, press release, US Attorney General Pam Bondi said that the case “underscores the Chinese government’s sustained and aggressive effort to infiltrate our military and undermine our national security from within,” She added, “The Justice Department will not stand by while hostile nations embed spies in our country – we will expose foreign operatives, hold their agents to account, and protect the American people from covert threats to our national security.”
Moreover, FBI Director Kash Patel also weighed in on the case, saying that Lai and Chen were “allegedly attempting to recruit U.S. military service members on behalf of the PRC.” He added, “The Chinese Communist Party thought they were getting away with their scheme to operate on U.S. soil, utilizing spy craft, like dead drops, to pay their sources.”
In addition, Director Patel described the case as “a complex, coordinated effort and is an example of outstanding counterintelligence work done by FBI San Francisco, Portland, Houston, San Diego, and the Counterintelligence Division.” He went on to say that his agency “will continue to vigilantly defend the homeland from China’s pervasive attempts to infiltrate our borders.”
"*" indicates required fields
Assistant Attorney General for National Security John Eisenberg also shed light on the case, saying, “Adverse foreign intelligence services like the PRC’s Ministry of State Security dedicate years to recruiting individuals and cultivating them as intelligence assets to do their bidding within the United States.” He added, “Under my leadership, the National Security Division will continue to defend our nation and neutralize our adversaries’ clandestine spy networks.”
Featured image credit: Shutterstock