A bipartisan bill targeting Chinese-linked vehicle technology has cleared its first major legislative hurdle, advancing past the Senate Commerce Committee with backing from automakers and labor groups.
The Connected Vehicle Security Act of 2026, sponsored by Senator Bernie Moreno (R-Ohio) and Senator Elissa Slotkin (D-Michigan), cleared the panel on July 15 and now awaits a floor vote. It targets not just finished cars from Chinese manufacturers but also the embedded telematics control units, cellular modems, GPS modules, and connectivity software that serve as the data pipeline between vehicles and external networks.
“Chinese cars are surveillance packages on wheels, with the ability to collect on American citizens and sensitive sites,” Slotkin said in a statement.
The 15% foreign-ownership provision has put Mercedes-Benz in the spotlight. Chinese government entities and investors together hold about 20% of the German automaker, placing it above the bill’s trigger line. Mercedes could qualify for waivers and would have until 2030 to restructure before the ownership provision would apply. The measure has also drawn endorsements from General Motors, the UAW, and the CAR Coalition.
The measure codifies and strengthens Commerce Department rules from the Biden era that blocked Chinese-connected vehicles from US roads. Vehicle and software restrictions would start in 2027, followed by hardware rules in 2030. A House companion bill has also been introduced.
The legislative push follows an incident that demonstrated the risk in concrete terms. Norwegian transit operator Ruter discovered a SIM card embedded in a Yutong electric bus that gave the Chinese manufacturer remote access to battery and power control systems. That finding prompted cybersecurity probes by authorities in the UK and Denmark. Backers of the bill say it shows the threat of remote vehicle manipulation is not hypothetical and that statutory safeguards are the only reliable defense.
