US Senate panel approves Bill cracking down on the sale of Chinese vehicles
An aerial view of cars lining up at an export terminal at a port in Shanghai, China on July 14, 2026. (Photo: Reuters/China Daily)
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The US Senate Commerce Committee approved legislation on Wednesday (Jul 22) to toughen a government ban on Chinese automakers entering the American market that could bar German automaker Mercedes-Benz from selling vehicles in the United States.
Senator Ted Cruz, the committee chair and a Texas Republican, said the Bill’s provision that would ban companies with more than 15 per cent ownership by Chinese entities would bar Mercedes-Benz from selling vehicles in the United States because of its nearly 20 per cent passive Chinese investment. He said the Bill required changes before it could become law.
Senator Bernie Moreno, an Ohio Republican, said Mercedes-Benz would have until 2030 to comply and could get waivers from the ownership requirement if necessary.
Moreno and Senator Elissa Slotkin, a Michigan Democrat, proposed legislation to codify a regulation imposed by the Biden administration that effectively bans all Chinese automakers from selling passenger vehicles in the US and takes other steps to prevent China from entering the US light-duty market.
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“We’re preventing an absolute, total, and complete destruction of our industrial base,” Moreno said.
Cruz said General Motors was pushing for the provision to get Mercedes-Benz out of the market and make its Cadillac brand more competitive. He said “we would never consider” banning Mercedes-Benz sales in the United States.
GM said in response the legislation isn’t about any individual automaker and added the automaker “supports policies that protect and strengthen American manufacturing and the global competitiveness of US automakers”.
Mercedes-Benz noted its extensive US operations and said it “continues to support legislation designed to protect US national security.
“Mercedes-Benz also remains committed to ensuring that any legislation does not impact our operations. The company will continue to safeguard its employees, dealers, suppliers, and customers.”
PRODUCTION SHIFTS TO UNITED STATES
Moreno noted that GM plans to shift production of its Chinese-made Buick Envision to the United States for the 2028 model year and said Ford has agreed to move Chinese-made Lincolns to the United States.
“I view that as a big victory,” Moreno said.
He added Google’s self-driving unit Waymo, which had been talking with Chinese automaker Geely about platforms coming from China, “has committed to looking at a Detroit-based manufacturer for their future platforms”.
Cruz said another Bill provision supported by GM to require automakers buy more expensive batteries from GM would add US$5,000 to the vehicles’ cost. An amendment to revise the battery management software requirements failed.
Moreno said that amendment had been sought by Rivian, which did not immediately comment.
Last month, Polestar said the Trump administration was forcing the electric-vehicle maker to stop selling vehicles in the US beginning in the 2027 model year. The Sweden-based company is majority-owned by China’s Geely Holding.
Polestar’s sister brand and co-founder, Volvo Cars, said in May it received authorisation to keep selling vehicles in the US, though it said it still must meet the rule’s requirements.
Bluetooth, Wi-Fi, cellular connectivity and some satellite communications technologies are covered under the rules based on national security concerns linked to the ability of vehicles to collect sensitive data on American owners.
Source: Reuters/nh
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