Volvo receives special authorization to sell cars with Chinese technology in the USA

Swedish automaker Volvo Cars has obtained a special authorization from Departamento from Comércio in the US to import and sell vehicles with Chinese hardware and software in the US market. Permission was granted by Escritório of Tecnologia of Informação and Comunicações, despite commercial restrictions in place since March 17, 2025.

The company, belonging to the Chinese group Geely, submitted a formal request to the regulatory body to continue selling its connected models in the country. With this specific authorization, Volvo Cars will be able to continue its growth plans in Estados Unidos, according to an official statement released by the manufacturer.

Regras restriction takes effect

Departamento of Comércio has implemented new regulations that restrict the import and sale of connected vehicles that incorporate electronic components and software originating from China and Rússia. The rules address two implementation periods:

• Chinese and Russian Software: restriction from model year 2027
• Chinese and Russian Hardware: restriction from model year 2030
• Automated Condução: software that allows autonomous driving is included in the restrictions
• Conectividade: access to satellite, cellular and Wi-Fi networks
• Assistência to driver: simple features are not subject to restrictions

The restrictions were established based on national security concerns. The government has identified that these components are easily exploitable by foreign governments for malicious intent, such as stealing user data or remotely controlling vehicle fleets.

Modelos Volvo manufactured in China

Volvo produces 2 of its main models in Chinese factories, both affected by the original trade restrictions. The XC60, the brand’s best-selling crossover, and the XC40, a smaller version, are assembled on the China. The company also maintains a design center at Xangai, strengthening its integration with Chinese infrastructure.

Sem the special authorization now granted, Volvo could not continue importing these models to the USA after the deadlines established in the Departamento and Comércio regulations. The permission ensures that the Swedish manufacturer will not need to completely redesign its vehicles or change the origin of their critical components before regulatory deadlines.

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Processo approval with authorities

Volvo Cars entered into negotiations with Departamento of Comércio to obtain an exception to the general restrictions. The process involved presentation of technical and commercial documentation to Escritório of Tecnologia of Informação and Comunicações. The company demonstrated, during the negotiations, that it could maintain safe operations even with the use of Chinese technology in its vehicles.

The granting of the special authorization comes in the context of broader commercial tensions between Estados Unidos and China. Empresas like Volvo, with bifurcated cross-continental operations and Chinese ownership, holds a unique position in regulatory exception negotiations. The approval signals that Departamento of Comércio is willing to relax rules in specific cases of foreign companies with history in the American market.

Outras manufacturers also seek exceptions

Volvo’s decision could pave the way for other international automakers with operations at China to seek similar authorizations. Empresas like BMW, Audi and Mercedes-Benz, which also produce vehicles with Chinese components, will be able to petition Departamento from Comércio for continuation of their US operations within the stipulated deadlines.

Fabricantes government-linked Chinese companies, such as BYD and SAIC, remain prohibited from selling complete connected vehicles in the American market, even if they use components manufactured in third countries. Essa restriction is more severe and presents no paths for special authorization under current rules.