Volvo Cleared to Import Connected Cars Despite China Ban

Volvo Cars has received approval from the U.S. Department of Commerce to continue importing connected vehicles into the United States, despite an impending ban on such vehicle software with Chinese links starting from model year 2027.

The Swedish automaker, which is partly owned by China's Zhejiang Geely Holding, was required to obtain specific authorization due to its ownership structure. According to Ars Technica, the U.S. government has allowed Volvo to import connected cars into the country despite the ban.

The approval comes amidst a broader crackdown on Chinese-developed and maintained vehicle software and hardware. In January 2025, then-President Joe Biden's administration finalized rules effectively barring nearly all Chinese cars and trucks from the U.S. market, as reported by TimesLIVE. The ban includes most Chinese-developed software that took effect in March 2026 for the 2027 model year.

Volvo Cars sold approximately 121,600 vehicles in the United States in 2025, down 2.9% from 2024. The company plans to produce a new hybrid model in South Carolina by the end of the decade, designed specifically for the U.S. market. This move will help Volvo boost capacity utilization at its South Carolina plant.

In April 2025, Volvo Cars CEO Hakan Samuelsson announced that the company would produce more vehicles in the United States. The group plans to start producing its popular XC60 mid-size SUV in South Carolina by late 2026. Despite initially aiming to phase out all non-electric models by 2030, Volvo has reversed course and stated that hybrids will remain part of its lineup.