--- title: "A Bill Taking Aim At Chinese Cars In America Just Advanced In The Senate. It Could Hit Mercedes Too" type: "News" locale: "en" url: "https://longbridge.com/en/news/293659485.md" description: "The U.S. Senate Commerce Committee advanced bipartisan legislation banning automakers with over 15% Chinese ownership from selling cars in the U.S. This bill, aimed at national security concerns regarding data and tech, could inadvertently impact Mercedes-Benz, where Chinese entities hold nearly 20%. While Senator Ted Cruz stated the intent is not to ban Mercedes, GM supports the strict threshold to aid American manufacturers. The bill also restricts connected vehicle tech from covered nations." datetime: "2026-07-23T19:55:55.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293659485.md) - [en](https://longbridge.com/en/news/293659485.md) - [zh-HK](https://longbridge.com/zh-HK/news/293659485.md) generator: "portal-rs" --- # A Bill Taking Aim At Chinese Cars In America Just Advanced In The Senate. It Could Hit Mercedes Too - A bill that would ban automakers with more than 15% stake by Chinese entities has progressed in the Senate. - One automaker caught up in the crossfire is Mercedes-Benz, which has a nearly 20% stake held by Chinese investors. - U.S. lawmakers say General Motors and the UAW are pushing for the low ownership threshold. Bipartisan legislation that would bar automakers with more than 15% ownership by Chinese entities from selling cars in the U.S. made it out of theU.S. Senate Commerce Committee on Wednesday. The bill, which proposes limiting the overall ownership stake and tech supplied by covered entities (such as China),advanced the committee on Wednesday, moving it closer to being signed into law. If it passes as written, which is not guaranteed, there could be an unexpected luxury brand caught up in the crossfire. Rather than look at just the physical makeup of a car, the assembly location, or the software controlling its circuitry—as a similar rule already in effect does—the bill focuses on the entities with ownership stake in a particular company. This is what makes the bill tougher than just outright banning a car assembled in Guangdong or with a few too many parts from a supplier out ofShenzhen. ![2027 Mercedes-Benz EQS](https://imageproxy.pbkrs.com/https://cdn.motor1.com/images/static/16x9-tr.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Photo by: Mercedes-Benz In fact, it's got some far-reaching consequences that could impact even well-established automakers from Europe.Mercedes-Benz is one of those brands, as Chinese automaker BAIC and the founder of Geely,Li Shufu, both own nearly 10% of the company. Combined, Chinese entities own nearly 20% of the German automaker. Senator Ted Cruz, the committee's chair, said that the bill, as written, would bar Mercedes-Benz from selling cars in the U.S., according to Reuters. He also said the bill needed to change before getting signed into law and that the U.S. "would never consider" banning Mercedes-Benz. He claimed that General Motors was pushing the strict provision in order to strengthen the Cadillac brand. A GM spokesperson told InsideEVs that the automaker "supports policies that protect and strengthen American manufacturing and the global competitiveness of U.S. automakers," and that "we can compete with anyone in the world when we are given a level playing field." Mercedes-Benz, meanwhile, did not immediately respond to an InsideEVs request for comment. The automaker told*Reuters* it"continues to support legislation designed to protect U.S. national security. Mercedes-Benz also remains committed to ensuring that any legislation does not impact our operations." Ohio Senator Bernie Moreno, one of the original co-sponsors of the bill, noted that Mercedes would have until 2030 to comply or seek a waiver. ![Motor1.com INSIDER - logo](https://imageproxy.pbkrs.com/https://cdn.motor1.com/custom/share/evus_newsletter_widget_logo.svg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Stay informed with our newsletter every weekday back Subscribe For more info, read our Privacy Policy & Terms of Use. What do you think? View Comments China's automotive sector has had quite the target on its back from U.S. legislators. And while ownership is the newest wrench that the Senate has thrown into the manufacturing cog, it isn't the only one.The same bill would also codify restrictions to keep tech linked back to China out of cars on U.S. roads. Lawmakers say that connected cars could collect sensitive data that poses a threat to national security if transmitted outside of U.S. borders. If passed as written, the Connected Vehicle Security Act would expand on an existing Commerce Department rule thateffectively axed the Polestar brand in the U.S. It would prohibit any connected vehicle made, designed, or with an ownership stake associated with any coveredentity (China, Iran, North Korea, or Russia) from being imported or sold in the U.S. beginning in 2027. Three years later, in 2030, the same prohibition would extend from the software used in connected vehicles to the hardware as well. More Chinese EV News 'Completely Insane': China Has 650 New Car Models So Far This Year Americans Can't Have These Affordable Chinese EVs. But They're Coming To Canada BYD's PHEV Pickup Just Landed In The U.K. But Americans Still Can't Have It After EV Batteries, China Wants To Dominate Car Brains Too We want your opinion! What would you like to see on Insideevs.com? 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