Old-Fashioned Tradecraft in a High-Tech Cold War

Thirty months in a federal penitentiary seems a modest price for operating as covert operatives of a foreign state, yet that is precisely the sentence handed down to Liren Lai and Yuance Chen. The two Chinese nationals operated a classic espionage ring on behalf of Beijing's Ministry of State Security, relying on surprisingly traditional tradecraft: hidden envelopes of cash and covert photography around American military installations. Both men entered guilty pleas to charges of acting as unregistered foreign agents and conspiring to do so without notifying the US Attorney General.

The mechanics of the operation, which court records indicate began no later than May 2021, reveal a methodically constructed pipeline into the US armed forces. Lai, who had entered the country on a tourist visa, initially brought Chen—a permanent US resident—into the fold. After serving as an intermediary between Chen and Chinese intelligence handlers, Lai eventually stepped back as Chen began taking orders directly. Their primary directive was simple: target US military personnel, photograph naval facilities, and build biographical dossiers on active-duty sailors for potential recruitment.

To keep the operation afloat, the duo facilitated dead drop cash transactions totaling at least $30,000 within the United States. In May 2022, they arranged the placement of a secret $10,000 cash transfer at a designated physical location, instructing US-based individuals to leave the money for collection. A subsequent drop delivered another $20,000. Assistant Attorney General for National Security John A Eisenberg characterized the effort as a long-running, extensive and brazen scheme to undermine US national security and support Chinese intelligence operations and recruitment in the US.

The arrest of Lai and Chen in June 2025 and their subsequent sentencing highlight the ongoing, low-intensity intelligence warfare between Washington and Beijing. Geopolitical rivalries are often framed in terms of advanced cyber warfare, yet old-fashioned human intelligence remains irreplaceable. Political leaders on both sides harbor few illusions about these activities. US President Donald Trump acknowledged as much in late August, remarking that while China spied on the United States, American agencies conducted reciprocal operations against Beijing.

This reciprocal reality plays out in courtrooms and detention centers across both hemispheres. Just as American prosecutors process cases against Chinese handlers, authorities in China take parallel measures. In June, Beijing announced the arrest of an American citizen on espionage charges, closely following reports regarding the detention of Min Zin, a dual US-Myanmar national and political analyst who had been critical of Myanmar's military junta. Ultimately, the 30-month sentences handed to Lai and Chen serve as a fleeting entry in an endless, quiet ledger of international espionage.

Written by Christiane Hofreiter christiane.hofreiter@alpineweekly.com