China gathering intelligence about U.S. Navy service members and bases
- Eric Schouten
- 3 days ago
- 3 min read
Date: 03/07/2025
Location: United States
Overview
On July 3, 2025, the U.S. Department of Justice unsealed charges against two individuals accused of acting as illegal agents of the People’s Republic of China (PRC), specifically working for the Ministry of State Security (MSS). This case represents another serious disruption of PRC covert intelligence operations inside the U.S., with a strong focus on U.S. military infiltration and espionage.
Two defendants were charged; Yuance Chen, 38, who arrived in the U.S. on a visa in 2015 and became a lawful permanent resident, and a new arrival past spring, entering Texas; Liren "Ryan" Lai tasked with supervision of the clandestine espionage operation.
Key intelligence and operational findings
1. Targeting U.S. Navy personnel
The MSS network actively focused on collecting intelligence about U.S. Navy personnel and facilities. Their objectives included:
Mapping Navy base structures and operations.
Understanding job roles that offer access to classified or sensitive information.
Identifying and cultivating potential insider recruits within specific naval occupations:
Intelligence Specialists – with access to classified threat assessments and tactical planning.
Information Systems Technicians – with access to Navy networks, communications, and cybersecurity infrastructure.
Mass Communication Specialists – able to gather internal narratives, media plans, and potentially manipulate messaging.
2. Use of social media for spotting and assessing
MSS operatives used open-source intelligence (OSINT) techniques on platforms like LinkedIn, Instagram, Facebook, and potentially Discord or Reddit to:
Identify military members with exploitable vulnerabilities.
Initiate contact under false identities.
Gauge loyalty, financial stress, or personal grievances as leverage for recruitment.
3. Video game platforms as covert communication channels
Consistent with a known MSS tactic, online multiplayer video game platforms (e.g., Call of Duty, PUBG, or others with voice/text chat) were used for covert messaging. These environments provide:
Anonymity and deniability.
End-to-end encrypted communication via in-game chats.
A pretext for pseudonymous, informal conversations that are harder to trace.
4. Use of “Dead Drops” for physical communication
The suspects were directed to conduct physical dead drops, including:
Leaving USB drives in public locations.
Dropping off packages containing cash or documents at predetermined spots.
Collecting materials from locations to avoid direct interaction.
This technique highlights MSS's reliance on traditional spycraft even while using modern digital tools.
Implications
This indictment underscores the hybrid espionage model employed by the MSS: combining traditional HUMINT techniques (recruitment, dead drops) with cyber-enabled and open-source targeting.
It also:
Reveals continued and systematic PRC interest in U.S. military infrastructure.
Emphasizes the risk of social engineering and insider threats from service members with critical roles.
Demonstrates that China’s MSS is evolving: blending covert digital engagement with classic espionage tactics.
Strategic insight for organizations (especially military, defense contractors, academia)
Review social media exposure of personnel.
Train employees on foreign recruitment tactics, especially those who travel, game online, or are active on social platforms.
Reinforce insider threat detection mechanisms.
Monitor suspicious engagement or contact patterns, including unsolicited inquiries related to defense work.
At Dyami | Security Intelligence, we work closely with a wide range of partners to raise awareness among businesses and government agencies about these threats, and to help them build resilience against espionage and unwanted interference — including through our subscription-based intelligence briefings.
Through Dyami | Academy, we also offer the training course “The World of Espionage” — an interactive awareness program that immerses professionals in the methods, motives, and risks of intelligence activities, with a focus on the defence, dual-use, and critical infrastructure sectors.
Want to bring this topic to the forefront within your organization? Get in touch with us. Count on us to keep you one step ahead.
