Volvo Cars said Tuesday it has received specific authorization from the U.S. Department of Commerce to continue importing and selling vehicles equipped with Chinese-developed connected car software in the United States, exempting the company from rules that would otherwise have banned such vehicles. The Biden administration finalized the restrictions in January 2025 on national security grounds: software from Chinese companies is prohibited starting with 2027 model-year vehicles, with a separate hardware ban taking effect for 2030 models. Volvo, which is majority owned by China’s Geely Holding, fell within scope of the rules because of its ties to Chinese manufacturing and technology. The company said the exemption followed “constructive discussions” with Commerce and other U.S. officials on its governance, technology, and data security practices. Bloomberg was first to report the authorization.
With the exemption in place, Volvo said it can now move ahead with its U.S. expansion plans. In September 2025, the company announced it would bring the XC60 midsize SUV and a new hybrid model into production at its South Carolina factory; in March it added that all production of the Polestar 3 — currently also manufactured in Chengdu, China — would eventually shift to the same plant. Separately, the Biden-era rule also bars Chinese companies from testing autonomous vehicles on U.S. roads; TechCrunch noted that Baidu’s Apollo, Pony.ai, and WeRide currently hold California AV testing permits with human safety operators, and has asked the state’s DMV whether those permits will be revoked under the rule.