US Grants Volvo Permission to Sell Connected Cars with Chinese Technologies

The US Commerce Department has granted Volvo Cars an exclusive waiver to import and sell vehicles featuring Chinese connected service technologies. The decision followed negotiations with the company’s representatives, addressing corporate governance, technological security, and data protection. This allows the Swedish automaker, owned by China’s Geely Holding, to continue operating in the US market.

The ban on importing vehicles with Chinese technologies was introduced in January 2025 due to cybersecurity concerns and potential national security threats. Under the new rules, vehicles with software developed or maintained by Chinese companies will be barred from the US starting in 2027, while those with Chinese hardware will face restrictions from 2030. Volvo, whose cars are primarily manufactured in Sweden and imported to the US, risked being affected by the ban due to its close ties with China.

The waiver enables Volvo to proceed with its US expansion plans. The company has already announced the relocation of Polestar 3 electric vehicle production from its Chengdu, China, plant to a facility in South Carolina. Additionally, the South Carolina plant is set to begin manufacturing the XC60 model and a new hybrid vehicle. Meanwhile, the new US regulations also prohibit Chinese companies from testing autonomous vehicles in the country, potentially impacting projects like Baidu Apollo and Pony.ai.