Mercedes-Benz Won’t Be Banned Over Chinese Ownership, Lawmakers Say

US lawmakers have said Mercedes-Benz will be exempted from proposed legislation that would prevent carmakers with more than 15% Chinese ownership from selling vehicles in the United States. The German luxury carmaker has nearly 20% of its shares held by two Chinese investors, putting it above the proposed threshold.

Senator Bernie Moreno, one of the bill’s sponsors, told Reuters on 29 September: “What we’re not going to do, obviously, is ban Mercedes-Benz vehicles in America.” Reuters reported the following day that Moreno said the final version of the legislation will exempt Mercedes-Benz, although the exact structure of the exemption is still part of the legislative process.

Under the proposed rules, BAIC Group owns 9.98% of Mercedes-Benz, and Chinese businessman Li Shufu owns 9.69% through Tenaciou3 Prospect Investment Limited, according to the company’s latest published shareholder data. Combined, the two stakes are nearly 20%, above the proposed 15% threshold.

The bill has cleared the Senate Commerce Committee and has bipartisan support; a companion House measure has more than 100 co-sponsors. Senator Rand Paul opposed the measure in its current form, arguing that it unfairly targets Mercedes-Benz. His objection blocked an attempt to secure expedited Senate approval before the chamber’s recess.

Supporters are expected to pursue Senate approval after lawmakers return in November, with the aim of passing legislation before the end of 2026. Until Congress approves final language, the precise treatment of Mercedes-Benz and other foreign carmakers with Chinese shareholders remains unsettled.

Other European brands that could be affected by the legislation as written include Aston Martin, which has significant investment from China’s Geely, and Volvo Cars and Lotus, which have stronger ownership links to the Chinese group.

The bill is intended to make existing US restrictions on Chinese-connected vehicles permanent and expand safeguards against Chinese influence in the automotive sector. Supporters cite national security and industry concerns; China has previously criticised US restrictions as unfair suppression of Chinese companies.