U.S. Moves to Ban Connected Cars with Over 15% Chinese Ownership; Mercedes-Benz Faces Sales Ban with 19.67% Stake

The U.S. Senate Committee on Commerce is set to vote on the "Connected Vehicle Safety Act," which would prohibit the sale of connected vehicles in the U.S. market if automakers have combined Chinese ownership exceeding 15%. German automaker Mercedes-Benz could be barred from selling its connected vehicles in the United States, as Beijing Automotive Group (BAIC) and Geely founder Li Shufu together hold a 19.67% stake—surpassing the proposed threshold. Mercedes-Benz is lobbying lawmakers, highlighting its long-standing investments in the U.S., creation of approximately 160,000 American jobs, and the fact that its Chinese shareholders do not participate in operational decisions. However, it has yet to secure support from senators. The bill’s sponsors have explicitly stated that the legislation aims to block China’s automotive industry from entering the U.S. market. Previously, Polestar—a Geely-owned brand—exited the U.S. market after failing to obtain sales authorization, while Volvo was allowed to continue operations after demonstrating that vehicle data would not be transmitted back to China and confirming it operates a full-scale vehicle manufacturing plant in the United States. In response to potential restrictions, several automakers have already taken countermeasures: General Motors, for instance, has required suppliers to replace Chinese-made components and plans to shift production lines to the U.S. The Office of the U.S. Trade Representative has indicated it currently has no plans to ease these restrictions.