India, May 30 -- Mercedes-Benz could potentially be barred from selling or manufacturing vehicles in the United States under a new bipartisan bill in Congress aimed at restricting automakers with ties to Chinese government-linked ownership, according to a CNBC report.

The proposed legislation, titled the Motor Vehicle Modernization Act of 2026, seeks to block companies with any direct or indirect equity interest from "foreign-adversary governments" from importing, selling, or producing vehicles in the US.

China is listed in the bill as a foreign adversary, alongside Russia and North Korea.

Concerns arise from Mercedes-Benz's shareholder structure. Its largest individual shareholder is BAIC, a Chinese state-owned automaker, which holds ...