Volvo gets special approval to sell China-linked cars in US despite federal ban

Volvo has received a special authorization to import and sell wirelessly connected vehicles in the United States that use Chinese hardware and software, even as a new Department of Commerce rule restricts many vehicles relying on Chinese or Russian technology. The carveout arrives amid heightened regulatory scrutiny of digital systems in modern cars, with concerns about data security and remote manipulation. Volvo says it followed a process outlined by the Commerce Department and obtained approval from the Office of Information and Communications Technology and Services. The company, owned by Geely and building key models in China such as the XC60 and XC40, views the permission as essential to its U.S. growth plans. The development underscores the tension between national security policy and the push for broader EV adoption and lower operating costs, with critics warning such exemptions could curb competition and delay access to advanced EVs. Regulators say limiting foreign-linked systems helps protect privacy and cybersecurity, though carveouts complicate market access for others.