The U.S. Senate Commerce Committee has approved a bill to toughen the government’s ban on Chinese automakers. The bill could end up blocking Mercedes-Benz from selling cars in the United States, even though Mercedes-Benz is a German company.
The bill says any car company with more than fifteen percent ownership by Chinese entities cannot sell vehicles in the U.S. Mercedes-Benz has close to twenty percent passive Chinese investment.* Senator Ted Cruz, a Texas Republican and the committee chair, said this means the bill as written would block Mercedes-Benz too. He said the bill needs changes before it can become law.
Two Chinese investors hold most of that stake. Chinese state owned automaker BAIC holds a stake of about ten percent. Geely founder Li Shufu holds close to ten percent more. Together, that adds up to close to twenty percent Chinese ownership in Mercedes-Benz.
Senator Bernie Moreno, an Ohio Republican, helped write the bill along with Michigan Democrat Elissa Slotkin. Moreno said Mercedes-Benz would have until 2030 to lower its Chinese ownership or follow new rules. He said the company could also apply for a waiver if it needs more time.
GM responded and said the bill is not about targeting one automaker. The company said it supports rules that protect American manufacturing and help U.S. automakers compete worldwide.
Mercedes-Benz said it employs more than 10,000 people in the U.S. and operates assembly plants in Alabama and South Carolina.
The bill is meant to make it harder to reverse rules first put in place by the Biden Administration in 2025. Those rules already block Chinese automakers from selling passenger vehicles in the U.S. over concerns that connected cars could collect sensitive data on American drivers. The bill has support from GM, the United Auto Workers, and other groups. It still needs to pass the full Senate and the House before becoming law.
Sources – cnbc.com, yahoo.com, aiada.org
*Passive Chinese investment means the money came from Chinese investors buying shares in the company, not from a Chinese company running or controlling Mercedes-Benz day to day.
S. 4429, Connected Vehicle Security Act of 2026, sponsored by Sen. Bernie Moreno with Sen. Elissa Slotkin as cosponsor, introduced April 29, 2026, referred to the Committee on Commerce, Science, and Transportation.
Direct link: https://www.govinfo.gov/app/details/BILLS-119s4429is
The right person just needs to get paid.