Senate passes China auto bill that could block Mercedes-Benz from entering the US

The Senate Commerce Committee advanced a bipartisan bill Wednesday aimed at tightening the ban on Chinese automakers from the U.S. market, despite Chairman Ted Cruz (R-Texas) warning that it could result in an inadvertent ban. mercedes benz From domestic vehicle sales.

Cruz said at the time of the Automotive Modernization Act of 2026’s commission raise that the bill’s 15% Chinese ownership standard covers Mercedes-Benz because two Chinese investors together own nearly 20% of Mercedes-Benz stock.

Cruz said he would “never consider” banning Mercedes-Benz, adding that changes would need to be made to the bill before it became law.

Mercedes-Benz’s two largest individual shareholders are China’s state-owned automaker Beijing Automotive Corporation (formerly Beijing Automobile Industry Group), which has a 9.98% stake, and Geely founder Li Shufu, who has a 9.69% stake.

The bill would codify federal regulations aimed at keeping Chinese-linked auto technology out of the United States, citing national security concerns that connected cars could collect sensitive data.

“We are preventing the absolute, total, complete destruction of our nation’s industrial base,” said Sen. Bernie Moreno (R-Ohio), who co-sponsored the bill with Sen. Elissa Slotkin (D-Mich.).

Mercedes-Benz had previously declined to comment on the bill, but said it employs more than 10,000 people in the United States and operates assembly plants in Alabama and South Carolina.

Moreno said in raising prices that Mercedes-Benz must comply with ownership restrictions until 2030 and could seek an exemption.

Mr. Cruz also criticized during Markup. general motors They support this clause in an effort to weaken Mercedes-Benz and make Cadillac more competitive.

“GM is pushing this clause to take Mercedes-Benz out of the market,” Cruz said.

GM and Mercedes-Benz did not respond to requests for comment. GM is America’s best-selling automaker