Senate panel advances China auto bill that could bar Mercedes-Benz from U.S.
The U.S. Senate Commerce Committee advanced bipartisan legislation, the Motor Vehicle Modernization Act of 2026, aimed at blocking Chinese-linked automakers and vehicle technology from the U.S. market over national security concerns. Senator Ted Cruz warned that the bill's 15% Chinese ownership threshold could inadvertently bar Mercedes-Benz, whose two largest individual shareholders—Chinese state-owned BAIC (9.98%) and Geely founder Li Shufu (9.69%)—collectively own nearly 20% of the company. Senator Bernie Moreno stated Mercedes would have until 2030 to comply or could seek a waiver. Cruz accused General Motors of supporting the provision to weaken Mercedes-Benz and boost Cadillac. Mercedes-Benz employs over 10,000 people in the U.S. and operates assembly plants in Alabama and South Carolina.
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