Mercedes Faces US Sales Ban Under Senate Bill Over 20% Chinese Ownership
Updated
Updated · Financial Times · Jul 22
Mercedes Faces US Sales Ban Under Senate Bill Over 20% Chinese Ownership
3 articles · Updated · Financial Times · Jul 22
Summary
A Senate Commerce Committee vote on Wednesday could bar Mercedes-Benz from selling connected vehicles in the US because Chinese-linked investors own about 20% of the automaker, above the bill’s 15% threshold.
The Connected Vehicle Security Act would also effectively block imports of CATL battery systems, reflecting US concerns that Chinese-linked hardware and software could enable surveillance, cyber intrusion or disruption through vehicle communications and battery controls.
Mercedes has lobbied to soften the measure, arguing it supports 160,000 US jobs and that no shareholder owns more than 10% or controls the company, but that campaign has drawn criticism from Republicans, Democrats and labor groups.
The bill still needs full Senate approval and reconciliation with the House, yet it already adds pressure on foreign automakers after Polestar was blocked from new US EV sales while Volvo won clearance by showing vehicle data did not flow to China.
Can legacy automakers like Mercedes-Benz untangle their Chinese investments by 2030, or will they be forced out of America?
With Polestar banned but Volvo approved, what is the key for Chinese-owned automakers to access the lucrative U.S. market?
Is Waymo's use of Chinese hardware a clever bypass of security rules or a 'Trojan Horse' on American roads?
The Connected Vehicle Security Act of 2026: How Congress Aims to Block Chinese Tech from U.S. Roads
Overview
As of July 2026, the Connected Vehicle Security Act is moving forward in Congress, with both House and Senate versions gaining strong support and many co-sponsors. The bill has already passed a committee, a step welcomed by groups like the Owner-Operator Independent Drivers Association. Supporters, including Senators Moreno and Slotkin, are working to attach the bill to the must-pass National Defense Authorization Act to boost its chances of becoming law. The main goal of the legislation is to address serious national and economic security concerns, especially about foreign technology in vehicles, and to protect American interests.