Volvo Cars has obtained approval from the U.S. government to sell vehicles with connected technology developed in China.

Volvo Cars, majority controlled by Zhejiang Geely Holding Group, has announced that it has received approval from the U.S. government to continue sales of vehicles equipped with connected technology developed in China. This decision comes after the administration of former President Joe Biden implemented strict rules that limit the access of Chinese cars to the American market for security reasons.

The new regulations, which will come into effect in March 2026, prohibit most software programs developed in China for 2027 models. Volvo has obtained a special authorization from the Department of Commerce, allowing it to continue its expansion in the American market. Currently, the company only produces the electric SUV EX90 in South Carolina, while the rest of the models are imported from Europe.

Additionally, Volvo has announced plans to produce a new hybrid model in the U.S. by the end of the decade and to start manufacturing the XC60 SUV in South Carolina from 2026.

The company has revised its strategy for phasing out internal combustion engines, retaining hybrid models in its lineup.