Chinese Stakes Put Mercedes-Benz at Risk of a U.S. Sales Ban

Mercedes-Benz is facing a potentially serious challenge in the United States after a Senate committee advanced legislation targeting automakers with significant Chinese ownership.

If enacted in its current form, the proposed law could prevent the German luxury carmaker from selling connected vehicles in the U.S. market because Chinese investors collectively hold nearly 20% of Mercedes-Benz Group.

The threat does not stem from a direct decision by Beijing or from Mercedes-Benz being controlled by a Chinese company. Instead, it comes from the structure of the automaker’s shareholders and a proposed U.S. ownership threshold.

According to Mercedes-Benz Group’s official shareholder data, China’s state-owned BAIC Group holds 9.98% of the company’s voting rights, making it its largest individual shareholder.

Chinese investor and Geely founder Li Shufu holds an additional 9.69% interest through Tenaciou3 Prospect Investment Limited. Together, the two Chinese holdings amount to approximately 19.67%.

The U.S. Senate Committee on Commerce, Science and Transportation advanced the Connected Vehicle Security Act of 2026 on July 22.

A provision in the bill would prohibit companies that are more than 15% owned by Chinese entities from selling connected vehicles in the United States.

Connected vehicles include modern cars using Bluetooth, Wi-Fi, cellular networks and certain satellite communication systems. U.S. lawmakers argue that these technologies could collect sensitive information about drivers, locations and infrastructure.

Senator Ted Cruz, the Republican chair of the committee, warned that the 15% threshold could unintentionally prevent Mercedes-Benz from selling vehicles in the United States because its combined passive Chinese investment exceeds the proposed limit.

Cruz said the bill would require changes before becoming law and stressed that lawmakers would not deliberately seek to ban Mercedes-Benz from the American market.

Senator Bernie Moreno, one of the bill’s sponsors, said Mercedes-Benz would have until 2030 to comply with the ownership requirement. He added that the company could potentially apply for waivers.

This could leave Mercedes-Benz with several options, including seeking an exemption, persuading its Chinese shareholders to reduce their holdings or restructuring parts of its ownership and U.S. operations.

Mercedes-Benz said it supports legislation designed to protect U.S. national security but remains committed to ensuring that new rules do not disrupt its American operations, employees, dealerships, suppliers or customers.

The company has a major manufacturing and commercial presence in the United States, making an outright ban economically and politically complicated.

The proposed restrictions reflect growing U.S. concerns about Chinese technology in modern vehicles. Lawmakers fear that cameras, sensors, communications systems and connected software could be used to collect data or create cybersecurity vulnerabilities.

However, applying a fixed ownership threshold to Mercedes-Benz has sparked debate because its Chinese shareholders are primarily financial investors. Their combined stakes do not necessarily mean that they control the German company’s management, technology or customer data.

The legislation is not yet law. It must still be approved by the full Senate and the House of Representatives before being sent to the president.

Therefore, Mercedes-Benz vehicles are not currently banned from sale in the United States.

Still, the committee vote has transformed the company’s shareholder structure from a financial matter into a potentially significant regulatory risk.

The future of Mercedes-Benz in one of the world’s largest luxury car markets could now depend on whether Congress changes the 15% threshold, grants the company an exemption or requires it to reduce its Chinese ownership before the 2030 deadline.