By Bill Gertz (The Washington Times)
Two Chinese nationals convicted of spying as unregistered agents were sentenced to prison in California for collaborating with China’s Ministry of State Security intelligence service, the Justice Department said Friday.
Liren “Ryan” Lai, 40, and Yuance Chen, 39, were each sentenced to two and a half years in prison for what prosecutors said was operating under the “direction and control” of the MSS in conducting clandestine intelligence activities in the U.S.
Court papers in the case disclosed that Lai and Chen gathered information for Chinese intelligence on U.S. military installations and personnel, including photographing Navy Base Kitsap in Bremerton, Washington, where U.S. ballistic missile submarines and nuclear weapons are stored.
Other Chinese intelligence targets of the two men were gathering photographs and videos of military recruits and active-duty sailors at a Navy recruiting station in Southern California.
The operatives also gathered detailed personal information on U.S. military personnel that the MSS believed were potential intelligence recruitment targets.
Lai and Chen also were convicted for facilitating covert MSS cash payments of at least $10,000 in a “dead drop” locker in Livermore, California, as part of an intelligence operation.
“Liren Lai and Yuance Chen operated in a long-running scheme to undermine U.S. national security by supporting Chinese intelligence operations and recruiting in the United States,” said John A. Eisenberg, assistant attorney general for national security, calling the conspiracy “extensive and brazen.”
Lai and Chen began their activities around May 2021 with Lai recruiting Chen and initially acting as a go-between with Chen and unidentified MSS officers. Later, Chen directly worked with the spy service.
Court papers also revealed the use of covert phone communications.
Both were arrested on June 27, 2025, and they pleaded guilty to conspiracy to act as agents of a foreign government without notifying the Justice Department.
The case highlights the findings of a recent report by Congress’ Government Accountability Office that said the FBI is not doing enough to counter the spying threat from “nontraditional intelligence collectors” (NTC) — agents and unofficial spies that engage in intelligence operations that may not be illegal, or are illegal under weak U.S. security laws, like the Foreign Agents Registration Act.
The report stated that recent federal prosecutions and counterespionage cases reveal that the MSS has been using such unofficial spies for decades, including government-directed efforts to suborn American scientists and academics as part of “talent recruitment” programs.
The operations have also included infiltrating U.S. companies through unofficial agents who then steal advanced technology that is supplied to China.
“The challenges the FBI faces in mitigating threats posed by NTCs, specifically the cultural differences between the FBI and academia, may impede the agency’s ability to fully address NTCs,” the report concluded.
China’s intelligence operations in the U.S. remain large-scale and aggressive, ranging from traditional targeting of government secrets to large-scale technology and intellectual property theft.
“By their own admission, Chen and Lai operated as illegal agents for the Chinese government on U.S. soil, carrying out clandestine intelligence work that included making covert payments, collecting sensitive military information, and attempting to recruit American service members,” said FBI Assistant Director Roman Rozhavsky of the Counterintelligence and Espionage Division.
“The Chinese government’s efforts to infiltrate our armed forces demonstrate just how far it will go to threaten U.S. national security,” he said.
This article was made available to WMAL via The Washington Times.
