Mercedes-Benz Risks US Ban in Bill to Restrict Chinese Cars (1)

US lawmakers are weighing legislation that would ban carmakers with ties to foreign adversaries, a measure that threatens to upend Mercedes-Benz Group AG’s business in the world’s second-largest auto market because it’s partly owned by China.

A provision in broader auto-industry legislation that advanced through a key committee in the House of Representatives last week would prohibit the sale or production of vehicles in the US by companies that are at least 15% held by foreign adversary countries, a list that includes China.

The bill is still far from becoming law and will likely see changes. It’s poised to ...