US sentences Chinese nationals to prison for military spying

Liren Lai and Yuance Chen were sentenced to 30 months in federal prison on Friday for carrying out clandestine intelligence operations on behalf of China's Ministry of State Security, including attempts to recruit active-duty US military personnel and facilitate cash payments for classified information.

Espionage Operations

The defendants pleaded guilty to acting as agents of a foreign government without notifying the Attorney General, admitting they had worked for Beijing's intelligence apparatus since at least May 2021. Lai, who entered the United States on a tourist visa, recruited Chen — a permanent resident — into the scheme and initially served as an intermediary between his co-conspirator and Chinese intelligence officers until Chen began receiving orders directly from his handler, according to the US Department of Justice.

Court documents reveal the men gathered information about American military installations and personnel, attempting to cultivate assets within the armed forces while facilitating "dead drop" cash exchanges in exchange for national security secrets. "Let this sentencing serve as a clear warning: If you attempt to jeopardize the safety and security of our service members, our citizens, or our nation, justice will find you," said US Attorney Craig Missakian for the Northern District of California, adding that the prosecution reflects the government's commitment to countering foreign intelligence threats.

Sentencing and Investigation

Federal agents arrested Lai and Chen in June 2025 following an extensive counterintelligence investigation by the FBI's Counterintelligence and Espionage Division. Both men subsequently pleaded guilty to conspiracy charges for acting as unregistered foreign agents and will undergo three years of supervised release upon completing their prison terms, court records show.