WASHINGTON, July 23 (Alliance News): A key US Senate committee has approved legislation aimed at further restricting Chinese-linked automakers from accessing the American market, a move that could also affect some global car manufacturers with significant Chinese ownership.
The US Senate Commerce Committee approved the bill on Wednesday, seeking to strengthen existing restrictions on Chinese vehicle manufacturers over national security concerns.
Committee Chairman Senator Ted Cruz said the proposed legislation would prohibit companies with more than 15% Chinese ownership from selling vehicles in the United States unless they meet the new legal requirements.
Cruz warned that the measure, if enacted in its current form, could also affect Mercedes-Benz, whose parent company has nearly 20% Chinese investment, potentially preventing it from selling vehicles in the US market.
Senator Bernie Moreno clarified that affected companies would have until 2030 to comply with the proposed ownership requirements and could also seek government waivers under certain circumstances.
The legislation is part of broader US efforts to reduce China’s influence in critical industries, including the automotive sector, amid growing concerns over national security, supply chains and advanced vehicle technologies.
The bill must still be approved by the full Senate and the House of Representatives before it can become law.
