The Senate approves a Chinese auto bill that could ban Mercedes-Benz from entering the United States

The Senate Commerce Committee on Wednesday advanced bipartisan legislation aimed at tightening the ban on Chinese automakers from the U.S. market, even as its Chairman Ted Cruz, Republican of Texas, warned that it could inadvertently block… Mercedes Benz of selling vehicles in the country.

Cruz said during the committee’s development of the 2026 Automotive Modernization Act that the bill’s 15% Chinese ownership limit would cover Mercedes-Benz because two Chinese investors collectively own nearly 20% of its shares.

“We would never consider” banning Mercedes-Benz, Cruz said, adding that the bill would need to be changed before it could become law.

The two largest individual shareholders in Mercedes-Benz are Chinese state-owned automaker BAIC, formerly known as Beijing Automobile Industry Corporation, with a 9.98% stake, and Geely founder Li Shufu, with a 9.69% stake.

The bill would codify federal restrictions aimed at keeping China-linked vehicle technology out of the United States due to national security concerns that connected cars could collect sensitive data.

“We are preventing the absolute, complete and complete destruction of our industrial base,” said Sen. Bernie Moreno, R-Ohio, who introduced the bill with Sen. Elissa Slotkin, D-Mich.

Mercedes-Benz previously declined to comment on the legislation, but said it employs more than 10,000 people in the United States and operates assembly plants in Alabama and South Carolina.

Moreno said during the markup period that Mercedes-Benz would have until 2030 to comply with the ownership limit and could request a waiver.

During the tags, Cruz was also charged GM To support this ruling in an attempt to weaken Mercedes-Benz and make Cadillac more competitive.

“GM is pushing for this clause to take Mercedes-Benz out of the market,” Cruz said.

GM and Mercedes-Benz did not immediately respond to requests for comment. General Motors is the best-selling automaker in the United States