A bipartisan Senate bill introduced in April would prohibit sales of connected vehicles by carmakers that are more than 15% Chinese owned. With almost 20% Chinese ownership, Mercedes-Benz is lobbying to raise the threshold to 25%. However, the German carmaker has come under fire from all sides and risks losing access to its most lucrative market after its China sales stalled.
Americans are terrified that Chinese carmakers could wipe out the Detroit Three if they are allowed to sell cars in the US. Europe has been a vivid example, with local carmakers threatened by Chinese competitors that sell better cars at lower prices, despite tariffs. The Connected Vehicle Rule passed in January 2025 by the Biden Administration was meant to protect the US car industry from the Chinese onslaught.
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