Mercedes-Benz risks a US sales ban under the Connected Vehicle Security Act, a bill set for a US Senate committee vote. The legislation would prohibit the sale of connected vehicles in the US if they are more than 15 percent owned by Chinese entities, and effectively ban battery systems from China's CATL. This move reflects growing US concerns over Chinese technology and its potential impact on the domestic auto industry.

The bill, introduced by Senators Bernie Moreno and Elissa Slotkin, aims to prevent foreign adversaries from accessing or controlling communication systems in connected vehicles, citing risks of surveillance and cyber intrusion. Mercedes, approximately 20 percent owned by Chinese groups Geely and BAIC, is lobbying to dilute the bill's provisions, highlighting its significant US employment of 160,000 jobs. However, critics argue this lobbying effort undermines national security and protections for American workers.

Concerns were amplified by the recent US ban on Polestar, majority-owned by Geely, and the potential security threats posed by Chinese battery management systems, which could be manipulated to cause fires. While CATL denies such capabilities, the debate underscores the escalating US-China technological rivalry and its implications for global automakers.