Mercedes-Benz May Be Barred from U.S. Sales Under Chinese Ownership Restrictions

U.S. Senate Commerce Committee Passes the '2026 Connected Vehicle Security Act'

The U.S. Senate Commerce Committee has passed a bill that would ban the sale of connected vehicles by automakers with more than 15% Chinese ownership. As a result, there are concerns that Mercedes-Benz may be unable to sell cars in the U.S. market.

Reuters Yonhap News

On July 22 (local time), the U.S. Senate Commerce Committee approved the ‘2026 Connected Vehicle Security Act.’ The bill’s central aim is to prohibit the import, manufacture, and sale of connected vehicles, as well as related software and hardware, if they are linked to adversarial nations. In particular, under the bill, connected vehicles cannot be sold in the U.S. if the combined ownership—whether in equity, voting rights, or board representation—held by entities that are established in, or have their primary place of business in, prohibited countries exceeds 15% in the carmaker in question.

In the case of Mercedes-Benz, the Chinese automaker Beijing Automotive Group (BAIC) holds about a 10% stake. Additionally, Li Shufu, the founder and chairman of Geely Automobile, also owns roughly 10%. As a result, the Chinese stake in Mercedes-Benz stands at approximately 20%, surpassing the 15% threshold set by the bill.

Commerce Committee Chairman, Republican Senator Ted Cruz, pointed out that if the 15% limit remains, Mercedes-Benz could be barred from selling cars in the U.S. He called for replacing the fixed threshold with a qualitative national security review, similar to the process of the Committee on Foreign Investment in the United States (CFIUS). Cruz stated, "I want this bill to pass," but also noted, "If the 15% standard stays in, it's not going to become law."

Republican Senator Bernie Moreno, who co-sponsored the bill, explained that even if the bill is enacted, Mercedes-Benz would have until 2030 to comply with the requirements. He also stated that companies not meeting the criteria may apply to the Department of Commerce for an exemption. In response to criticism that the bill specifically targets Mercedes-Benz, he countered, "Banning the sale of Mercedes-Benz vehicles in the United States is neither something we would ever do nor the intention of anyone involved."

Mercedes-Benz has called for bill revisions, emphasizing that its U.S. factories, partner companies, and dealer network support 160,000 jobs. While the company agreed with the legislative aim of strengthening U.S. national security, it stated, "We are committed to ensuring that no legislation will adversely affect our operations."

However, the final passage of the bill remains uncertain. The measure must still be voted on by the full Senate. Meanwhile, a similar bill has also been introduced in the House of Representatives.

This content was produced with the assistance of AI translation services.