Volvo Cars Secures U.S. Waiver from Ban on Chinese Connected Vehicle Tech

Volvo Cars said Tuesday it received a specific authorization from the U.S. Commerce Department to continue importing and selling vehicles with Chinese-connected car technology, sidestepping a Biden-era ban set to take effect in 2027. The Swedish automaker, majority-owned by China’s Geely, was barred under rules finalized in January 2025 that prohibit software developed or maintained by Chinese firms. Volvo’s exemption followed “constructive discussions” on governance and data security, allowing it to proceed with U.S. expansion plans. The ban, aimed at national-security risks, blocks such software starting with model-year 2027 vehicles and connected hardware from model-year 2030. Volvo assembles most U.S.-bound vehicles in Sweden, with the EX90 built in South Carolina. The company plans to add XC60 and hybrid SUV production at the U.S. plant and will shift all Polestar 3 manufacturing there from Chengdu, China.