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Policy & Compliance

An ownership clause snags the vote to ban Chinese cars for good

A 15% ownership threshold that could pull Mercedes-Benz into the Connected Vehicle Security Act has slowed the Senate's fast-track vote.

CarThreat Staff
Last updated: September 26, 2026 2:07 am
By
ctadmin
2 Min Read
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The Senate’s push to make the Chinese connected-vehicle ban permanent slipped past the Trump-Xi summit. Bernie Moreno and Elissa Slotkin agreed on September 24 to spend the coming days negotiating with Rand Paul, the lone senator blocking unanimous consent, instead of forcing the vote they had wanted this week.

The delay cost the sponsors their best timing. Passage was meant to land while Xi Jinping was in Washington. Aides now hope the Senate acts before September ends, with House action following in November, though fast passage would leave the tariff and access rules that govern today’s market untouched.

The Connected Vehicle Security Act would turn a Biden-era restriction into statute. The text bars importing, building, selling or reselling a connected vehicle, or the software and hardware tied to it, when the provenance is China or another listed adversary. Ford’s chief executive proposed a partnership of exactly that kind to administration officials earlier in 2026, and the wording closes the door on it.

The bill’s ownership test reaches further than its sponsors intended. Ted Cruz put the line at 15%: a carmaker above it that is held by Chinese entities would be shut out of US sales. Mercedes-Benz, with Chinese investors holding about 20%, sits on the wrong side. Moreno said the company could still have until 2030, and waivers remain possible.

Elsewhere the measure hands the Commerce Department power to name and block particular vehicle technologies, components and transactions on national security grounds. The timetable runs in two stages, starting with complete vehicles and software in 2027 and reaching hardware components in 2030. Backing is broad: 51 senators have signed on, the committee vote was unanimous, and the House companion has drawn more than 100 cosponsors.

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TAGGED:Connected VehiclesCybersecurityElectric Vehicles (EVs)RegulationsVehicle Software
SOURCES:Automotive World
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