Volvo Cars has reached an agreement with the Trump administration that exempts the company from a U.S. crackdown on connected vehicle technology made in China.
The Swedish automaker, which is majority-owned by China’s Geely Holding, said Tuesday it has received special permission from the U.S. Department of Commerce to continue importing and selling vehicles equipped with Chinese connected car technology in the United States. Connected car technology includes software that covers everything from syncing with your phone to some self-driving features. Bloomberg first reported the special approval.
Volvo cars were banned under a rule finalized in January 2025 by the Biden administration that bans vehicles equipped with software or hardware developed and maintained by Chinese companies, citing national security concerns. The rule begins with 2027 model year vehicles equipped with software developed and maintained by Chinese companies. A separate ban on importing hardware connected to vehicles begins with 2030 model year vehicles.
Volvo cars are primarily manufactured in Sweden and imported to the United States, with the exception of the EX90, which is assembled at the company’s South Carolina plant. But Volvo’s relationship with China’s Geely Automobile, and its manufacturing operations in the country, meant it would be prohibited under the new rules.
Volvo said the approval followed “constructive discussions” with the Department of Commerce and other U.S. officials regarding the company’s governance, technology and data security. The company said it can now move forward with its expansion plans in the United States.
In September 2025, the company announced plans to produce two additional vehicles, the XC60 mid-sized SUV and a new hybrid vehicle, at its South Carolina plant. In March, Volvo announced that it would transfer all production of sister company Polestar’s EV “Polestar 3” to its U.S. factory. The Polestar 3 is also currently produced in Chengdu, China.
The rule, known as “Securing Supply Chains for Information and Communications Technology and Services: Connected Cars,” devotes significant time to the threat of vehicles equipped with self-driving systems developed by companies with ties to China.
Under the rules, Chinese companies will be prohibited from testing self-driving cars in the United States. Now, several of these companies, including Baidu’s Apollo Autonomous Driving LLC, Pony.ai, and WeRide, have received permits to test their self-driving technology (with a human safety operator behind the wheel) in California. TechCrunch reached out to the Department of Surface Transportation, the agency that regulates AVs in the state, to find out if those permits will be revoked.
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