Senate Bill Targeting Chinese Cars Could Also Catch Mercedes in Its Net

A controversial bill that aims to restrict vehicles with deep Chinese ties just cleared a major hurdle in the U.S. Senate. The legislation, which advanced this week, would effectively ban automakers from selling cars in America if they have too much Chinese ownership or significant ties to the Chinese government.

But here’s the twist: the bill’s language is broad enough to snag some well-known European brands. Mercedes-Benz, for example, counts a major Chinese shareholder, and its parent company has joint ventures in China. S. market.

Proponents say the measure is about national security, arguing that Chinese-owned car companies could share sensitive data or be used as tools of the state. Critics, however, call it an overreach that could backfire, raising prices for American consumers and straining relations with allies.

The bill still needs to pass the full Senate and House before reaching the president’s desk. For now, auto dealers and manufacturers are watching closely, especially those with one foot in Beijing.