By David Shepardson
WASHINGTON, Sept 29 (Reuters) - A sponsor of a bill to toughen a US government ban on Chinese vehicles said on Tuesday that talks are ongoing to ensure that German automaker Mercedes-Benz is not banned from selling vehicles in the US.
The bill approved by the Senate Commerce Committee in July would ban companies with more than 15% ownership by Chinese entities from selling vehicles in the US. Mercedes-Benz has nearly 20% passive ownership from Chinese entities.
"What we're not going
to do, obviously, is ban Mercedes-Benz vehicles in America," said Republican Bernie Moreno, adding, "there's concern that, can they get to 15% without debilitating their company?"
Moreno hopes to try to win fast-track approval for the Chinese vehicle bill this week before the Senate adjourns until November as discussions continue with Senator Rand Paul.
Mercedes-Benz did not immediately comment.
Moreno said there were discussions about how to ensure that Volvo Cars, majority owned by China's Geely Holding, could continue to sell vehicles in the US.
"We're looking at a variety of different things," Moreno said.
Moreno also noted that Aston Martin - 17% owned by Geely and Britain's Lotus, which is majority owned by Geely - both could be barred because of the law.
The bill's other chief sponsor, Democratic Senator Elissa Slotkin, said last week that all Democrats support moving ahead and only Paul opposes it.
"My understanding is it's 99 to 1," she said.
Senator Paul told Reuters he thought the bill was an unfair attack on Mercedes-Benz. "If they take it out of the bill, I told them that he bill can go forward. They need to take it out. A bill shouldn't directly attack one company."
The bill has significant momentum and a House version now tops 100 co-sponsors, while automakers and legislative aides hope to win full passage this year.
US President Donald Trump told Fox News earlier this month that he would accept Chinese car companies building cars in the US, sparking alarm among automakers. Automakers, suppliers and dealers have urged Trump "to maintain policies that keep the door firmly shut to Chinese automakers seeking to sell, import or manufacture vehicles inside the US."
A regulation imposed by the former Biden administration in early 2025 effectively banned all Chinese automakers from selling or building passenger vehicles in the US because they could send sensitive driver data to China. Washington also maintains more than 100% tariffs on Chinese electric vehicles.
The Chinese foreign ministry has previously urged the United States "to respect the laws of the market economy and principles of fair competition," criticizing previous proposals against Chinese companies as "unreasonable suppression." It argues Chinese cars are popular globally because of their technological innovations, reflecting an aggressive home market.
(Reporting by David Shepardson; Editing by Aurora Ellis)
