Mercedes Faces US Ban Threat Over Chinese Ownership — Congress Bill Targets Connected Cars

A serious threat is brewing for Mercedes-Benz. The German automaker could be banned from selling its vehicles in the United States if Congress passes a new bill targeting companies with significant Chinese ownership. British media reports have revealed the details of this developing story.

The Legislative Threat

The Connected Vehicle Security Act explicitly prohibits the sale of internet-connected cars from any company where Chinese ownership exceeds 15%. These connected vehicles — capable of collecting vast amounts of data — are the core concern. Washington argues that American user data could fall into foreign hands, posing a national security risk. The bill hasn't passed yet, but the debate is already heated.

Mercedes' Chinese Stake

The numbers are clear. Chinese ownership in Mercedes-Benz stands at around 20%, far exceeding the proposed legal limit. BAIC holds nearly 9.98% of the shares, while Li Shufu, chairman of China's Geely group, owns about 9.7%. Mercedes sits well above the threshold, and its position is precarious.

A Race to Persuade

Mercedes-Benz is moving fast. The company is now lobbying American lawmakers to raise the maximum allowed Chinese ownership from 15% to 25%. Its argument is simple and direct: Chinese shareholders don't manage the company's operations or control its technical or strategic decisions. Financial ownership, Mercedes insists, doesn't equal control.

Why Connected Cars Matter

The modern car is no longer just a means of transport. The US administration sees it as a potential spy machine on wheels. Connected vehicles can collect massive amounts of data — geographic location, driving patterns, user behavior. Washington views any connection to Chinese entities in this space as an unacceptable risk.

The bill isn't yet law. The Senate Commerce Committee approved it, but the road ahead is long. Final approval requires votes from both the Senate and the House of Representatives, followed by the US president's signature. Lawmakers have indicated the text could see amendments before final adoption. Transition periods or exemptions for certain companies remain possible.

Not Just Mercedes

Mercedes-Benz isn't alone in the crosshairs. Other European companies with Chinese investment ties could face the same fate. The coming months may reshape the automotive industry map in the world's largest market.