U.S. Proposes Ban on Chinese-Owned Auto Firms with Over 15% Stake Operating in America

U.S. lawmakers are drafting a bill that would prohibit automakers linked to "foreign adversaries" from selling or producing vehicles within the United States. According to the draft provisions, any company with at least 15% ownership by nations designated as "foreign adversaries"—such as China—would be barred from conducting business in the U.S.

This provision, included in the 2026 Motor Vehicle Modernization Act, was recently passed by a key committee of the U.S. House Committee on Energy and Commerce. The bill still has a long legislative journey ahead, likely to be merged with broader transportation legislation before being submitted for full House vote, and must also gain approval from the Senate.

Although the bill offers exemptions for certain automakers already producing vehicles in the U.S. for five years, these exceptions do not apply to companies with direct or indirect equity stakes held by "adverse foreign governments." This means automotive manufacturers with ties to Chinese state-owned capital would struggle to avoid the ban.

For example, Mercedes-Benz Group AG, based in Germany, is partially owned by Beijing Automotive Industry Holding Co., Ltd.—a Chinese state-owned enterprise—with nearly 10% stake, while Li Shufu, founder of Geely Holding Group, also holds close to 10%. Combined, their stakes total approximately 19.67%, exceeding the 15% threshold. Mercedes-Benz operates two large assembly plants in the U.S., employing over 10,000 workers; if the bill passes, it would face significant disruption. A Mercedes-Benz spokesperson stated the company is collaborating with lawmakers to seek assurances that it can continue serving American customers.

A parallel bill, the 2026 Connected Vehicle Safety Act, includes a similar 15% ownership restriction. Previously, Volvo Cars had obtained special authorization from the U.S. government to bypass such restrictions.

Source: sputniknews

Original article: toutiao.com/article/1866756190518279/

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