Volvo Cars has reached an agreement with the Trump administration, exempting the automaker from restrictions imposed on Chinese "smart" vehicle technologies. The Swedish brand, majority-owned by China's Geely Holding, announced it has received the necessary authorization from the US Department of Commerce. This is reported by Techcrunch.com .
This permit allows Volvo to continue importing and selling vehicles in the US equipped with Chinese software and technology. Connected car technologies include software ranging from smartphone synchronization to autonomous driving functions.
As a reminder, in January 2025, the Biden administration decided to ban vehicles with Chinese-developed software and hardware due to national security concerns. Although Volvo cars are primarily manufactured in Sweden, the company fell under these restrictions due to its ties with Geely and its factories in China.
According to Volvo representatives, this agreement is the result of constructive negotiations with the Department of Commerce regarding governance, technology, and data security. The company will now continue its expansion plans in the US, including the production of XC60 and new hybrid models at its South Carolina plant.
Also, under the new rules, Chinese companies are expected to be banned from testing driverless cars in the US. Currently, companies like Baidu, Pony.ai, and WeRide have permits to conduct such tests in California, but the revocation of these licenses is under consideration.
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