A bill moving through the U.S. Congress could expose several European automakers to restrictions intended to address security risks linked to China. The Connected Vehicle Security Act of 2026 (S.4429) concerns connected vehicles and companies with sensitive ties, and its current wording could cover firms with more than 15% ownership or control connected to Chinese entities.
Mercedes-Benz is German-owned and operated, but Chinese-linked stakes could put it above that proposed threshold. BAIC Group holds about 9.98% of Mercedes-Benz Group, while Geely founder Li Shufu controls roughly 9.69% through Tenaciou3 Prospect Investment Limited. Together, those stakes amount to around 20%. Bill co-sponsor Bernie Moreno has said the aim is not to disrupt Mercedes-Benz’s U.S. business, and lawmakers are considering changes to avoid unintended effects.
Other potential targets have closer ownership ties to China. Geely owns a majority of Sweden’s Volvo Cars and controls Lotus; the Chinese group also holds about 17% of Aston Martin. The bill remains under consideration, and none of the four brands currently faces restrictions under it. The proposal has gained support from senators and House co-sponsors, but must still pass further legislative steps.
The debate comes as the United States already maintains steep barriers on Chinese cars, including tariffs above 100% on some electric vehicles and restrictions involving software, connectivity and digital systems. The bill raises a broader question for an industry built on cross-border investment: how U.S. rules will define Chinese influence in global automakers.