Auto giant, MercedesBenz, could face ban from selling or manufacturing vehicles in the United States under a new bipartisan bill in Congress.
Government officials said the proposed law aimed at restricting automakers with ties to Chinese government-linked ownership.
According to a CNBC report, the bill, titled the ‘Motor Vehicle Modernization Act of 2026,’ seeks to block companies with any direct or indirect equity interest from “foreign adversary governments” from importing, selling, or producing vehicles in the US.
China is listed in the bill as a foreign adversary, alongside Russia and North Korea. Concerns arise from Mercedes-Benz’s shareholder structure, as the largest individual shareholder is BAIC, a Chinese state-owned automaker, which holds a 9.98% stake in the company.
BAIC was formerly known as Beijing Automotive Industrial Corp. In addition, Chinese billionaire Li Shufu, founder of Geely, holds a 9.69 percent stake through his investment firm Tenacious Prospect Investment. Combined, the two holdings account for roughly 19.67 percent of MercedesBenz Group AG.
