Volvo Cars has reached an agreement with the Trump administration that exempts the automaker from a U.S. crackdown on car technology linked to China.
The Swedish automaker, majority-owned by China’s Geely Holding, said Tuesday it has received special approval 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 mobile phone synchronization to self-driving features. Bloomberg was first to report the special approval.
Volvo was banned under rules finalized by the Biden administration in January 2025 that block vehicles equipped with software and hardware developed and maintained by Chinese companies, citing national security concerns. The rule began with model year 2027 vehicles equipped with software developed and maintained by Chinese companies. Another ban banning the import of vehicle connectivity hardware begins with model year 2030 vehicles.
Volvo vehicles are primarily manufactured in Sweden and imported into the United States, except for the EX90, which is assembled at the company’s plant in South Carolina. However, Volvo’s links with China’s Geely and its manufacturing operations in China meant it would be banned under the new rules.
Volvo said the approval followed “constructive discussions” with the Commerce Department and other U.S. officials about the company’s governance, technology and data security. The automaker said it can now move forward with its expansion plans in the United States.
The automaker announced plans to produce two more vehicles at its South Carolina plant in September 2025: the XC60 midsize SUV and a new hybrid vehicle. In March, Volvo said it would bring all production of its sister company Polestar’s Polestar 3, an EV, to its U.S. factories. Polestar 3 is currently produced in Chengdu, China.
The regulation, known as “Securing the Information and Communications Technology and Services Supply Chain: Connected Vehicles,” spends significant time addressing the threat of vehicles equipped with self-driving systems developed by companies working with China.
Regulations prohibit Chinese companies from testing self-driving cars in the United States. Currently, several companies, including Baidu’s Apollo Autonomous Driving LLC, Pony.ai and WeRide, have permission to test autonomous vehicle technology driven by human safety drivers in California. TechCrunch reached out to the Department of Motor Vehicles, the agency that regulates AVs in the state, to see if these permits would be revoked.
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