The U.S. Senate Commerce Committee has approved a bill seeking to tighten restrictions on Chinese-backed automakers operating in the American market, a move that could affect global car manufacturers with significant Chinese investments.
The measure is aimed at limiting Beijing’s influence in the U.S. auto sector by restricting companies with substantial Chinese ownership from selling vehicles in the country, amid concerns over national security, protection of domestic manufacturers and reliance on foreign-controlled investments in critical industries.
Approved on Wednesday in Washington, D.C., the bill includes a provision that would bar automakers with more than 15 percent ownership by Chinese entities from selling vehicles in the United States.
The proposed ownership threshold has raised concerns that the measure could affect some established global manufacturers with Chinese investments, including Mercedes-Benz, which has nearly 20 percent Chinese ownership.
Committee Chairman Senator Ted Cruz warned that the legislation, in its current form, could prevent the German automaker from selling vehicles in the U.S. market.
“Without changes, this provision would bar Mercedes-Benz from selling vehicles in the United States,” Cruz said.
Senator Bernie Moreno, however, said Mercedes-Benz would have until 2030 to comply with the proposed rules and could apply for waivers where necessary. He stressed that the legislation was not intended to punish established automakers but to safeguard U.S. interests.
The bill reflects growing bipartisan concerns over China’s role in strategic industries, with lawmakers seeking to protect domestic markets from foreign influence while addressing potential security risks.
Analysts said the measure could push global automakers with Chinese investments to reconsider their ownership structures and long-term strategies in the U.S. market.