Linda Sun and her husband Chris Hu were arrested on Tuesday morning at their multimillion-dollar home on Long Island.
A former aide to two New York governors has been charged with spying on behalf of the Chinese government.
Linda Sun held numerous posts within the New York state government, including deputy chief of staff for governor Kathy Hochul, and deputy diversity officer for former governor Andrew Cuomo.
She was arrested on Tuesday morning, along with her husband Chris Hu, at their $4m (£3m) home on Long Island.
Sun is accused of using her positions and influence to subtly advance Beijing’s agenda in exchange for millions of dollars.
At the request of Chinese officials, among other things, Sun blocked representatives of the Taiwanese government from accessing the governor’s office, and shaped New York government messaging to align with China’s priorities, prosecutors allege.
In return for her work, her husband Hu received help for his business activities in China, the indictment said.
This was in the form of a financial boost that, prosecutors said, allowed the couple to buy their multimillion-dollar home, as well as a second property in Hawaii worth $1.9m (£1.45m), as well as luxury cars including a 2024 Ferrari.
Sun also received smaller gifts, including tickets to performances by a visiting Chinese orchestra and ballet groups, the indictment alleges.
If true, the allegations would show that China was able to gain influence at the highest levels of New York state government for almost a decade.
“As alleged, while appearing to serve the people of New York as deputy chief of staff within the New York State Executive Chamber, the defendant and her husband actually worked to further the interests of the Chinese government and the CCP (Communist Party of China),” United States attorney Breon Peace said.
“The illicit scheme enriched the defendant’s family to the tune of millions of dollars.”
Among the allegations in the indictment, Sun is accused of working to ensure the “Uyghur situation” in China was not mentioned in a Lunar New Year video that Chinese officials had requested from the then governor of New York in January 2021.
Both Sun and Hu pleaded not guilty during an initial court appearance on Tuesday afternoon and were released on bail.