U.S. Capitol Building [Reuters=Yonhap News file photo]

The U.S. Senate Committee on Commerce, Science, and Transportation passed legislation on the 22nd (local time) to restrict Chinese automotive companies from entering the U.S. market.

Consequently, there is speculation that sales of vehicles by the renowned German automaker Mercedes-Benz could be blocked in the U.S. market.

The Senate Commerce Committee held a meeting that day and passed the "Connected Vehicle Security Act of 2026," introduced by Senators Bernie Moreno (Republican, Ohio) and Elissa Slotkin (Democrat, Michigan).

The core of the bill is to prohibit the import, manufacture, and sale of connected vehicles, software, and hardware linked to adversarial nations such as China, Russia, Iran, and North Korea.

In particular, the bill includes a provision that prohibits the sale of vehicles in the U.S. if an entity established in one of the restricted countries holds 15% or more of the equity, voting rights, or board seats of a given automaker.

If this provision remains unchanged as the bill proceeds to be passed by the full Senate and the House of Representatives, Mercedes-Benz, in which Chinese entities hold nearly 20% of the shares, could be blocked from selling vehicles in the United States.

However, Senate Commerce Committee Ranking Member Ted Cruz (Republican, Texas) stated, "This bill needs to be amended before it is enacted into law," adding, "We would never contemplate banning Mercedes-Benz from selling cars in the United States."

Reuters reported that Senator Cruz pointed out that General Motors (GM) is pushing for these regulations to drive Mercedes-Benz out of the market and boost the competitiveness of its own Cadillac brand.

Senator Moreno, the bill's sponsor, told Reuters that "Mercedes would be given until 2030 to comply (with the provision) and could be granted a waiver from the ownership requirements if necessary."