US Senate panel passes bill restricting Chinese automakers — could Mercedes-Benz lose access to American market?

The US Senate Commerce Committee passed legislation Wednesday that would restrict Chinese automakers from entering the American market. If enacted without changes, the bill could also bar Mercedes-Benz — in which Chinese investors hold roughly 20 percent — from selling vehicles in the United States.

The committee voted to advance the Connected Vehicle Security Act of 2026, co-sponsored by Sen. Bernie Moreno (R-Ohio) and Sen. Elissa Slotkin (D-Mich.).

The bill would ban the import, manufacturing and sale of connected vehicles and related software and hardware linked to countries the United States considers adversaries, including China, Russia, Iran and North Korea.

A key provision would prohibit US sales of vehicles produced by any automaker in which an entity incorporated in an adversary nation holds 15 percent or more of the company's shares, voting rights or board seats.

If that provision survives the full Senate and House without amendment, Mercedes-Benz — in which Chinese shareholders hold approximately 20 percent — could be barred from selling vehicles in the US market.

However, Commerce Committee Chairman Ted Cruz (R-Texas) said the bill would need revisions before becoming law. "We are absolutely not going to consider banning Mercedes-Benz from selling in the United States," he said.

Cruz has suggested that General Motors is pushing the provision to drive Mercedes-Benz out of the market and boost the competitiveness of its Cadillac brand, according to Reuters.

Moreno, one of the bill's sponsors, told Reuters that Mercedes-Benz would be given until 2030 to comply with the provision and could receive a waiver on the ownership requirement if needed.