The US plans to ban Chinese companies from holding stakes in domestic car manufacturers and this could affect Mercedes-Benz

US lawmakers plan to introduce a bill to prohibit Chinese enterprises from holding stakes in domestic car manufacturers and conducting business within the country. The German Mercedes-Benz Group may be affected.

According to Bloomberg, US congressmen are considering a bill that would prohibit car manufacturers with ties to foreign rivals from conducting business in the United States. As some of the shares of Mercedes-Benz Group are held by Chinese enterprises, this measure is likely to disrupt Mercedes-Benz's business layout in the US market.

A key committee of the US House of Representatives passed a draft legislation for the automotive industry last week. One of the provisions stipulates that any company holding at least 15% of the equity in a foreign rival country (including China) is prohibited from selling or producing automobiles within the United States.

The above-mentioned bill still has a long way to go before it becomes officially law and is likely to be revised. Before being submitted to the full vote of the House of Representatives, the bill is expected to be merged with a broader transportation-related bill. After being passed by the House of Representatives, it still needs to be approved by the Senate.

Nevertheless, the current clause design has already posed real risks, potentially making the globally renowned German luxury carmaker Mercedes-Benz a victim of the US's policy towards China. Washington is currently striving to exclude China from the US automotive industry.

A spokesperson for Mercedes-Benz stated in a statement that the company has always and will continue to cooperate with legislators in good faith, to ensure that any legislation allows the company to serve American customers, dealers, employees and suppliers.

Representatives from the White House and the Speaker of the House, Johnson, have not responded to requests for comment yet.

The report quotes an insider as saying that Mercedes is currently in discussions with US government officials to seek a solution.

Although the above-mentioned bill exempts car manufacturers that have already produced or sold vehicles in the United States from the ban, it does not include those car companies that are controlled by state-owned enterprises.

The Chinese state-owned auto company BAIC Group holds nearly 10% of the equity in Mercedes-Benz, and Li Shufu, the founder of Geely Holding Group, also holds nearly 10% of the equity in Mercedes-Benz. This has led to a combined Chinese ownership stake that may exceed the 15% foreign ownership threshold set by the aforementioned draft regulations.