The Senate Commerce Committee advanced bipartisan legislation targeting Chinese-linked vehicle technology on Wednesday, moving the China auto bill forward even as Chairman Ted Cruz of Texas cautioned it could inadvertently block Mercedes-Benz from the U.S. market.
China auto bill ownership threshold at issue
During a markup of the Motor Vehicle Modernization Act of 2026, Cruz said the measure’s 15% threshold for Chinese ownership could capture Mercedes-Benz because two Chinese investors together hold nearly 20% of the company’s shares. He said lawmakers would not intend to ban Mercedes-Benz and that the legislation would need revisions before final passage.
Mercedes-Benz’s largest individual shareholders include Chinese state-owned automaker BAIC, with a 9.98% stake, and Geely founder Li Shufu, with 9.69%.
The bill would codify federal restrictions designed to keep Chinese-connected vehicle technologies out of the United States over national security concerns, including the risk that connected cars could collect sensitive data, according to sponsors.
Senator Bernie Moreno of Ohio, who introduced the bill with Senator Elissa Slotkin of Michigan, said the proposal is intended to protect domestic industry. “We’re preventing an absolute, total, and complete destruction of our industrial base,” he said.
Mercedes-Benz has previously declined to comment on the measure, noting it employs more than 10,000 workers in the United States and operates assembly plants in Alabama and South Carolina.
Moreno said Mercedes-Benz would have until 2030 to meet the ownership limit and could apply for a waiver.
During the markup, Cruz also alleged that General Motors backs the ownership provision to disadvantage Mercedes-Benz and bolster Cadillac’s position, saying, “GM is pushing for this provision to get Mercedes-Benz out of the market.”
General Motors and Mercedes-Benz did not immediately respond to requests for comment. GM is the top-selling automaker in the United States.
