Volvo Cars has received approval from the Trump administration to continue importing and selling vehicles equipped with connected car technology in the United States, despite the company's majority ownership by Chinese conglomerate Geely Holdings.

The approval comes amid broader U.S. concerns about Chinese-connected technology in vehicles and potential national security implications. The Biden administration had previously proposed regulations that could restrict or ban connected vehicle technology from China and other countries of concern.

Volvo Cars stated that the approval allows the company to move forward with its expansion plans for its U.S. manufacturing facility. The Swedish automaker has been operating a factory in South Carolina and has been working to increase its American production capacity.

The decision represents a notable exception in the current regulatory environment, where the U.S. government has been increasingly scrutinizing Chinese-owned companies and their technology offerings in various sectors, including automotive.

Connected car technology typically includes features such as internet connectivity, remote vehicle monitoring, and various digital services that communicate with external networks. U.S. officials have expressed concerns that such technology could potentially be used for surveillance or data collection by foreign governments.

Volvo's approval to continue operations suggests the company may have addressed regulatory concerns or demonstrated that its connected vehicle systems do not pose security risks that would warrant restriction under current U.S. policies.