US senators gear up for November China car ban vote

US senators seeking a permanent ban on Chinese vehicles are expected to renew their effort in November after failing to secure enough support for a fast-track vote before the Senate recess.

Republican Senator Bernie Moreno and Democratic Senator Elissa Slotkin are backing legislation that would restrict Chinese-linked companies from selling vehicles in the United States. The measure had been expected to move quickly, but concerns raised by Republican Senator Rand Paul delayed the effort.

Paul objected to provisions that could affect German automaker Mercedes-Benz because Chinese entities hold a significant passive stake in the company. Moreno has said the final version of the legislation would ensure Mercedes-Benz is not unfairly affected.

The bill approved by the Senate Commerce Committee in July would prohibit companies with more than 15% Chinese ownership from selling vehicles in the US. Mercedes-Benz has nearly 20% passive Chinese ownership, creating concerns over how the proposed restrictions would apply.

The legislation has gained support in Congress. A related House bill has attracted more than 100 co-sponsors, while its supporters hope both chambers can approve the measure before the end of the year.

The proposed ban comes as Washington continues to tighten restrictions on Chinese automotive companies. Rules introduced under the previous administration effectively blocked Chinese automakers from selling or manufacturing passenger vehicles in the US over concerns about sensitive vehicle and driver data.

The US also maintains tariffs exceeding 100% on Chinese electric vehicles.

President Donald Trump has recently indicated that Chinese automakers could potentially manufacture vehicles in the United States, a position that has raised concerns among some American automakers, suppliers and dealers.

The companies have urged the administration to maintain restrictions on Chinese automakers seeking access to the US market.

China has criticized such measures and called on Washington to respect market principles and fair competition, describing restrictions on Chinese companies as unfair treatment.