Mercedes-Benz could avoid a proposed U.S. ban targeting vehicles and automakers with Chinese ownership or technology ties, although lawmakers still need to resolve how the legislation would apply to the German automaker.

The bipartisan bill recently stalled in the Senate and could be delayed until after the midterm election. It would expand on restrictions introduced by the Biden administration that have already effectively prevented Chinese vehicles from being sold in the United States.

Under the proposed legislation, automakers with more than 15 percent Chinese ownership would also be barred from selling vehicles in the U.S. That threshold has raised questions about Mercedes-Benz, whose ownership includes a 9.98 percent stake held by Beijing Automotive Group and a further 9.7 percent owned by Geely founder and chairman Eric Li Shufu.

Lawmakers consider an exemption

The Washington Post reported that Republican Senator Rand Paul initially highlighted the possibility that the bill could unintentionally block Mercedes-Benz from the U.S. market.

Republican Senator Bernie Moreno, a sponsor of the bill with Democratic Senator Elissa Slotkin, said lawmakers would need to revise the proposal to prevent that outcome. Moreno said the U.S. president would not sign legislation banning Mercedes-Benz from the country and that a way must be found to address the automaker’s ownership structure.

Moreno also questioned whether Mercedes-Benz could reduce its Chinese ownership below the 15 percent limit without seriously harming the company. He separately pointed to Volvo, which is majority-owned by Geely, as another automaker that would need to remain eligible to sell vehicles in the United States.

Aston Martin also exceeds the proposed threshold

The bill could affect other brands with Chinese ownership ties. Geely owns a 17 percent stake in Aston Martin, placing that automaker above the proposed 15 percent limit as well.

For now, the legislation has stalled, and its future timing remains uncertain. The comments from Moreno indicate that lawmakers may seek changes to ensure Mercedes-Benz and other affected automakers are not unintentionally excluded from the U.S. market.