BUSINESS

Volvo Cars Gets Permit to Sell Connected Vehicles in U.S.

Published: May. 29, 2026 7:34 p.m. GMT+8

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A Volvo showroom in Miami, Florida. Photo: VCG

Volvo Cars has secured a specific authorization from the U.S. government to export and sell connected vehicles in the country despite its Chinese ownership, bypassing upcoming bans taking aim at Chinese- and Russian-linked automotive technologies.

The landmark decision offers Volvo a vital exemption from stringent U.S. restrictions scheduled to take effect in 2027, making it the first known automaker with major Chinese backing to secure such a permit.

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Volvo Cars secured a U.S. government waiver to export connected vehicles despite Chinese ownership, bypassing 2027–2030 bans on China-linked tech.
The Swedish automaker, ~79% owned by Geely, invested $1.3B in South Carolina and plans two new models before 2030.
Analysts say the precedent is unlikely to be replicated by other Chinese carmakers due to Volvo’s long U.S. history and manufacturing footprint.

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Who’s Who

Volvo Cars: Volvo Cars secured a rare U.S. waiver to export connected vehicles despite 79% Chinese ownership by Geely. The Swedish automaker bypasses 2027 restrictions through constructive talks on governance and data security. It has invested $1.3 billion in a South Carolina plant, creating over 2,000 jobs, and plans two new models by 2030.

Zhejiang Geely Holding Group Co. Ltd.: Zhejiang Geely Holding Group Co. Ltd., a Chinese company, holds an approximate 79% stake in Volvo Cars. Due to this ownership, Volvo is categorized as a China-linked entity under U.S. rules, requiring a special waiver to continue exporting connected vehicles to the U.S.

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What Happened When

September 2024：: Washington begins levying a 100% tariff on Chinese electric vehicles.

Early 2025：: U.S. Department of Commerce’s Bureau of Industry and Security finalizes the regulations targeting Chinese- and Russian-linked automotive technologies.

April 2025：: A 25% tariff on all imported fully assembled vehicles is implemented.

January 2026：: President Donald Trump says he would welcome Chinese carmakers to build plants in the U.S. and hire American workers.

May 2026：: A joint statement issued during Trump’s visit to China makes no mention of the automotive sector.

Before 2027：: U.S. bans import of connected-vehicle systems or autonomous-driving software linked to China and Russia are scheduled to take effect.

By 2027：: The bans on connected-vehicle systems and software will be implemented, requiring Volvo to secure a special waiver due to its Chinese ownership.