U.S. Proposes Legislation Setting 15% Chinese Ownership Red Line

[Policy Development] The U.S. Senate Committee on Commerce has passed the 'Connected Vehicle Safety Act of 2026,' establishing a prohibition threshold at 15% Chinese ownership.

Key Development: Mercedes-Benz Hit First Due to Nearly 20% Chinese Ownership

BAIC Group holds 9.98% and Geely holds 9.69%, together approaching 20%, triggering the bill's restriction clause. Although neither entity participates in operations, under current standards this would still result in a sales ban for Mercedes-Benz in the U.S.

Critical Figures: 343,000 Vehicles and Local Employment Under Pressure

Mercedes-Benz sold over 343,000 vehicles in the U.S. in 2025 and operates a manufacturing plant in Alabama; if enacted, the bill would severely damage its North American business and local employment.

Strategic Context: Escalation of U.S.-China Tech Decoupling

The bill, jointly advanced by bipartisan lawmakers, explicitly restricts control by entities from 'covered countries' (including China) over connected vehicle manufacturers, reflecting the U.S.'s intensifying technological containment strategy toward China.