Senate panel advances China auto bill that could bar Mercedes-Benz from U.S. - CNBC

What the report says

CNBC reported that the Senate Commerce Committee advanced bipartisan legislation on Wednesday that would strengthen federal limits on Chinese-linked automakers and vehicle technology in the U.S. market. The proposal, called the Motor Vehicle Modernization Act of 2026, is tied to national security concerns about connected vehicles and the possibility that sensitive data could be gathered through vehicle systems.

Committee Chairman Sen. Ted Cruz, R-Texas, cautioned during the markup that the bill’s 15% Chinese ownership threshold could have unintended consequences for Mercedes-Benz. CNBC reported that Mercedes-Benz’s two largest individual shareholders are Chinese: state-owned BAIC holds 9.98%, while Geely founder Li Shufu owns 9.69%. Together, those stakes are close to 20%, which Cruz said could bring the German automaker under the bill’s restrictions. He said the measure would need revisions before becoming law.

Sen. Bernie Moreno, R-Ohio, who introduced the bill with Sen. Elissa Slotkin, D-Mich., defended the measure as a way to protect the U.S. industrial base. According to CNBC, Moreno said Mercedes-Benz would have until 2030 to meet the ownership requirement and could also request a waiver. Mercedes-Benz previously declined to comment on the bill but noted that it has more than 10,000 U.S. employees and assembly plants in Alabama and South Carolina.

CNBC also reported that Cruz accused General Motors of backing the provision to hurt Mercedes-Benz and improve Cadillac’s competitive position. GM and Mercedes-Benz did not immediately respond to CNBC’s requests for comment. The bill’s progress highlights the tension between restricting Chinese influence in connected-car technology and avoiding disruption for global automakers with major U.S. operations.