Volvo Cars has been granted special permission to continue to sell cars with connected car technology developed by its majority-owned parent company, Geely, based in China, the company reported in its May 26 release.
This specific authorization from the Office of Information and Communications Technology and Services comes under the “Securing the Information and Communications Technology and Services Supply Chain: Connected Vehicles” rule in the U.S.
In January 2025, President Joe Biden’s administration finalized rules under his Inflation Reduction Act barring nearly all China-built cars and trucks from the U.S. market as part of a crackdown on vehicle software and hardware from China.
The rules included a ban on most software developed and maintained in China that took effect in March 2026 for 2027 model-year vehicles and covered companies with significant Chinese ownership.
However, Volvo says it has followed a process required by the U.S. Department of Commerce to obtain a specific authorization for the continued import and sale of connected cars.
The U.S. is one of the largest markets for Volvo Cars and home of a manufacturing facility in Charleston, South Carolina where it has invested over $1.3 billion to date, creating more than 2,000 jobs.
In September 2025, Volvo Cars announced additional investments in the plant to bring two new vehicles into production before 2030.
I assume permission was granted because of Volvo’s investment in US manufacturing facilities.
Does the above open the door for other China vehicle manufacturers to enter the US market space if they invest in US manufacturing plants?
Volvo US offerings are not cheap-$60-80K. So no push back from US competitors?