The Senate Commerce Committee advanced bipartisan legislation aimed at blocking Chinese-linked automakers and vehicle technology from entering the U.S. market. The measure would codify federal restrictions over concerns that connected cars could collect and transmit sensitive data, reflecting broader U.S. scrutiny of Chinese influence in the auto sector.
During the committee’s markup of the Motor Vehicle Modernization Act of 2026, Senator Ted Cruz, Republican of Texas, warned that the bill’s 15% Chinese ownership threshold could cover Mercedes-Benz because its two largest individual shareholders are Chinese. He noted that BAIC, the Chinese state-owned automaker, holds 9.98%, and Li Shufu, founder of Geely, holds 9.69%, jointly approaching a 20% stake. Cruz stressed that the bill would need changes before becoming law, saying, “We would never consider banning Mercedes-Benz.” Still, he argued the threshold could have unintended consequences for the brand in the U.S.
Senator Bernie Moreno, Republican of Ohio, said Mercedes-Benz would have until 2030 to comply with the ownership limit and could seek a waiver. Moreno, who introduced the bill with Senator Elissa Slotkin, Democrat of Michigan, said the timeline reflects the complexity of enforcing ownership rules while maintaining industrial competitiveness. Mercedes-Benz has previously declined to comment on the legislation but noted it employs more than 10,000 people in the United States and operates assembly plants in Alabama and South Carolina.
The committee’s panel also drew attention to concerns that Chinese-linked vehicle technology could pose security risks. In the exchange, Cruz accused General Motors of backing the provision to weaken Mercedes-Benz and bolster Cadillac, saying, “GM is pushing for this provision to get Mercedes-Benz out of the market.” GM and Mercedes-Benz did not immediately respond to requests for comment. The measure’s supporters emphasize protecting the U.S. industrial base amid national security concerns, while critics warn of potential collateral impacts on American auto manufacturing and investment.
Overall, the debate highlights ongoing tensions over Chinese ownership in American manufacturing, the reach of national-security policy into vehicle markets, and the potential implications for major luxury brands operating in the United States.
