German media reports that Mercedes-Benz and other German automakers are lobbying the US to ease restrictions targeting Chinese-invested automakers. The new rules could ban cars from manufacturers with Chinese shareholders from entering the US market.

German Automakers Rush to Lobby Washington

According to reports from German media including Handelsblatt, Mercedes-Benz is actively lobbying the US government to weaken legislation aimed at excluding automakers with Chinese shareholders from the US market.

The core of these new rules: if an automaker has Chinese capital backing, its products may be restricted from entering the US market. This is a lethal threat to German automakers deeply rooted in China while maintaining significant US operations.

Dual Dilemma for German Automakers

German automakers face unprecedented dual pressure:

In China: Domestic brands continue to gain share, with German brands declining from "dominant" to "defensive." In H1 2026, foreign automakers' combined China share fell to 28.2%, losing approximately 5 million units compared to five years ago.

In the US: If implemented, new rules could ban products from Volkswagen, BMW, Mercedes and others with Chinese joint ventures from entering the US market.

Mercedes' Special Situation

Mercedes-Benz faces a particularly delicate position. As a partner in Beijing Benz, Mercedes has massive production and sales in China. Meanwhile, the US is one of Mercedes' largest single markets globally. If the new rules are implemented, Mercedes would face an agonizing choice between its two core markets.