Experts gave Texas leaders a hard warning this week. They said some Chinese apps may move money for drug cartels.

The warning came at a hearing. It was on Thursday, July 30. The Texas House Committee on Homeland Security held the meeting. This panel also covers public safety and veterans' affairs. Leaders at the hearing talked about threats from China.

Kelley Currie spoke at the hearing. She works for the Atlantic Council. She studies Chinese crime groups. She said Alibaba and WeChat are not just for shopping and chat. She said their money tools act as "money movers and accountants" for crime groups in Asia. She said those groups run scam centers. She said they also run much of the drug and human trafficking in Asia. Currie went on. She said these same money tools also "serve as the bankers for the Mexico and Latin America based drug cartels and other criminal activity in the United States."

Michael Lucci spoke too. He runs a group called State Armor. He said Chinese firms can get U.S. licenses to move money. But he said those firms must still obey Chinese law. He cited a 2017 Chinese law. It tells firms to spy for the Communist Party.

Lucci used Alibaba as one case. The U.S. Justice Department sued Alibaba. It said the site let sellers push illegal drug tools. Alibaba agreed to pay $600 million to end the case on July 1. The Pentagon also placed new rules on Alibaba in June. It claimed the firm had ties to China's army. Lucci pointed to a claimed White House memo. The memo says China used Alibaba to build files on Americans. No court has proven this claim.

Leaders also asked about Chinese crypto machines in Texas. Currie said crypto kiosks are "a major vector for fraud and scams." She said they bring in cash for crime groups too. Lucci cited a Senate report. It found some Chinese crypto mines can run by remote control. He said they can spike power use fast. He said it could match a steel plant in three seconds. "If those are remotely controlled by China, they can throw incredible oscillations across the Texas electrical grid," Lucci told the panel.

Cheryl Yu spoke too. She works for the Jamestown Foundation. She studies China's "united front" plan. She said China's party makes friends first. Then it asks favors later. "Business, cultural, educational, and scientific exchanges can all be fronts for united front work," Yu said. Lucci brought up a July 27 summit in Beijing. China's leader Xi Jinping was there. He told 60 million Chinese people who live abroad to "actively serve the motherland."

Ammon Blair works for the Texas Public Policy Foundation. He said local police often lack tools to fight foreign terror groups. He asked leaders to grow a law. It is called House Bill 45. He wants police at every level to share tips on foreign threats.

Chad Seely works for ERCOT. That group runs the Texas power grid. He said a state law now makes power firms report ties to countries like China. Firms must sign a form. The form says that country cannot reach the grid. Seely said ERCOT already removed one group that broke that rule. But he said ERCOT mostly trusts the paperwork. State Rep. Katrina Pierson said, "So, we're basically just taking their word." Emma Stewart works for Idaho National Laboratory. She warned that any part with a remote link could later be hacked.

Cole Hefner leads the panel. He said Texas may do more on China next year. The next full state session starts on January 12, 2027.