Senate Panel Advances Chinese Vehicle Crackdown With Mercedes-Benz Stakes
The Senate Commerce Committee approved bipartisan legislation Wednesday that would tighten federal restrictions on Chinese-linked vehicles and connected car technology, advancing a major U.S.-China auto policy fight toward the full Senate.
The Connected Vehicle Security Act of 2026, sponsored by Sens. Bernie Moreno of Ohio and Elissa Slotkin of Michigan, would move beyond temporary executive-branch restrictions by writing tougher limits into federal law. Supporters say connected vehicles can collect sensitive data and rely on software or hardware that could create national security risks.
The bill’s biggest flashpoint is Mercedes-Benz.
Reuters and the Financial Times reported that the measure could affect Mercedes because Chinese-linked investors hold roughly 20 percent of the German automaker, above the bill’s reported 15 percent threshold for certain Chinese ownership exposure. The company has argued that no shareholder owns more than 10 percent, that Chinese investors do not control its board decisions, and that Mercedes supports national security legislation that does not disrupt its U.S. operations.
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Sen. Ted Cruz criticized the threshold during the committee debate, warning that the language could punish Mercedes-Benz and operate as protectionism rather than a tailored security review. Moreno countered that Mercedes would have time to comply and could seek waivers, according to reports.
The plain-English consequence is that Congress is considering a durable legal wall against Chinese-connected vehicle systems, not just Chinese-branded cars. That could affect automakers, battery suppliers, dealers, software vendors, and consumers if final language remains broad.
The bill still must clear the full Senate and move through the House process before becoming law. Until then, the committee vote is a major step, not a final ban.
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