Senate Committee Approves Bill Banning Chinese-Linked Connected Vehicles

The U.S. Senate Commerce Committee unanimously approved the Connected Vehicle Security Act of 2026, a bipartisan measure designed to ban the import, sale, and operation of connected vehicles from China, Russia, Iran, and North Korea. Sponsored by Senators Bernie Moreno and Elissa Slotkin, the legislation codifies national security regulations to prevent foreign entities from collecting sensitive data or remotely controlling vehicles. The ban on wireless technology from these nations is scheduled to begin in January 2027.

A contentious provision bars any automaker with more than 15% Chinese ownership, a threshold that would impact Mercedes-Benz due to its nearly 20% passive Chinese investment. Committee Chairman Ted Cruz warned that this could inadvertently shut the German brand out of the U.S. market and raise consumer costs. In response, Senator Moreno stated that the bill includes a waiver process and grants affected companies until 2030 to comply.

Senator Cruz alleged that General Motors supported the ownership restriction to provide its Cadillac brand with a competitive advantage. General Motors denied the claim, stating it supports policies that strengthen American manufacturing. The legislation is already driving industry shifts, as General Motors and Ford have agreed to move the production of certain China-made models to the United States. The bill now moves to the full Senate for a floor vote.