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Volvo Wins U.S. Clearance Over China-Tied Vehicle Ban
The approval lets Volvo keep U.S. sales of connected vehicles as the Biden-era ban on China-tied software and hardware nears.
On May 26, Volvo Car AB received U.S. Commerce Department authorization to continue importing and selling connected passenger vehicles, resolving concerns tied to the automaker's majority ownership by China's Zhejiang Geely Holding Group.
Rules finalized by the Biden administration in January 2025 blocked vehicles equipped with Chinese-developed software and hardware, raising questions about whether Volvo would face exclusion under the ban effective for 2027 model-year vehicles.
Volvo Car CEO Håkan Samuelsson told Bloomberg in March that it would be "unthinkable" to be banned, stating "These are basic requirements, and our setup is no different from other Western manufacturers." The company has invested more than $1.3 billion at its Charleston, South Carolina plant.
The authorization does not extend to Polestar, the EV maker controlled by Geely's founder Li Shufu, which continues working with U.S. authorities to meet regulatory requirements. U.S. officials stated the approval does not signal approvals for other Chinese-owned automakers.
Another ban prohibiting vehicle connected hardware imports begins with 2030 model-year vehicles, and lawmakers have proposed tougher rules as Chinese cars face 100% import tariffs on electric vehicles. Volvo halted Chinese imports after U.S. tariff increases took effect.