Volvo Cars has reached a deal with the Trump administration that frees the automaker from U.S. pressure on China-linked auto technology.
The Swedish automaker, majority-owned by China’s Geely Holding, said on Tuesday it had received special approval from the US Commerce Department to continue importing and selling cars with Chinese connected car technology to the US. Connected car technology involves software that covers everything from syncing with phones to some automated driving functions. Bloomberg first reported on the special permit.
Banned by Volvo regulations It was finalized by the Biden administration In January 2025, it blocked cars equipped with software and hardware developed and maintained by Chinese companies for national security reasons. The rules It started with 2027 model year cars equipped with software developed and maintained by Chinese companies. Another ban banning the import of vehicle-related equipment begins with 2030 model year vehicles.
With the exception of the EX90, which is assembled at the company’s factory in South Carolina, Volvo cars are primarily manufactured in Sweden and imported into the United States. But Volvo’s ties to China’s Geely and its manufacturing operations in the country meant it would be banned under the new rules.
Volvo said the approval came after “constructive discussions” with the Commerce Department and other US officials about the company’s governance, technology and data security. The automaker said it can now move forward with expansion plans in the US.
The automaker announced plans to bring two additional vehicles into production at its South Carolina plant in September 2025 — the XC60 mid-size SUV and a new hybrid vehicle. In March, Volvo said it would bring all of its production Polestar 3EV to US factory from sister company Polestar. The Polestar 3 is also currently manufactured in Chengdu, China.
The the ruleKnown as “Information and Communication Technologies and Services Supply Chain Security: Connected Vehicles,” it spends considerable time on the threat of vehicles with automated control systems developed by companies with Chinese connections.
Under the rules, Chinese companies will be barred from testing autonomous vehicles in the United States. Today, several of these companies, including Baidu’s Apollo Autonomous Driving LLC, Pony.ai and WeRide, have permits to test autonomous vehicle technology (with a human safety operator behind the wheel) in California. TechCrunch reached out to the Department of Motor Vehicles, the agency that regulates AVs in the state, to find out if those permits will be revoked.
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