Bipartisan legislation that would bar automakers with more than 15% ownership by Chinese entities from selling cars in the US made it out of the US Senate Commerce Committee on Wednesday. The bill, which proposes limiting the overall ownership stake and tech supplied by covered entities (such as China), advanced the committee on Wednesday, moving it closer to being signed into law.
Rather than looking at just the physical makeup of a car, the assembly location, or the software controlling its circuitry - as a similar rule already in effect does - the bill focuses on the entities with ownership stake in a particular company. This is what makes the bill tougher than just outright banning a car assembled in China or with a few too many parts from a supplier out of China.
View Price on AmazonIn fact, it's got some far-reaching consequences that could impact even well-established automakers from Europe. Mercedes-Benz is one of those brands, as Chinese automaker BAIC and the founder of Geely, Li Shufu, both own nearly 10% of the company. Combined, Chinese entities own nearly 20% of the German automaker.
Senator Ted Cruz, the committee's chair, said that the bill, as written, would bar Mercedes-Benz from selling cars in the US, according to Reuters. He also said the bill needed to change before getting signed into law and that the US "would never consider" banning Mercedes-Benz.
Mercedes-Benz, meanwhile, did not immediately respond to an InsideEVs request for comment. The automaker told Reuters it "continues to support legislation designed to protect US national security. Mercedes-Benz also remains committed to ensuring that any legislation does not impact our operations."
Ohio Senator Bernie Moreno, one of the original co-sponsors of the bill, noted that Mercedes would have until 2030 to comply or seek a waiver.
China's automotive sector has had quite the target on its back from US legislators. And while ownership is the newest wrench that the Senate has thrown into the manufacturing cog, it isn't the only one. The same bill would also codify restrictions to keep tech linked back to China out of cars on US roads.
Source: insideevs.com
