BEIJING, July 17 (Reuters) – The United States is set to restore Hong Kong’s special trading status, revoked in a 2020 order by U.S. President Donald Trump in response to Beijing’s imposition of a national security law in the financial hub, China said on Friday.
The year-long executive order, implemented on July 14, 2020 during Trump’s first term, has been extended each year. China’s commerce ministry said Washington had confirmed it would not extend it after the renewal date passed this week. The White House did not immediately respond to a request for comment.
Hong Kong had benefited from a special economic and trade status with the United States that was separate from U.S. dealings with China. This status was based on the principle that Hong Kong remained a separate customs territory and maintained a high degree of autonomy after its 1997 handover from Britain to China.
The reported decision to let the order lapse would mark a significant reversal and comes after recent trade talks between Washington and Beijing that also produced tariff reductions. It could restore Hong Kong’s preferential treatment on export controls and other trade measures that have been aligned with those applied to mainland China since 2020.
CHINA SAYS U.S. IS MOVING IN A MORE POSITIVE DIRECTION
The commerce ministry welcomed the move to restore the status as a step toward implementing understandings reached during recent talks between Beijing and Washington. Trump met Xi in Beijing in May.
“The U.S. adjustment of its Hong Kong policy in a more positive direction also aligns with the widespread expectations of the international community,” the statement published on its website said.
It urged the U.S. to respect China’s sovereignty and the rule of law in Hong Kong, restore and strengthen normal trade and economic exchanges with the city, and help improve China-U.S. relations.
Critics of the security law say it has crushed the wide-ranging freedoms promised to Hong Kong when it returned to Chinese rule; supporters say it has brought stability to the city after a year of anti-government protests in 2019.
The United States began eliminating Hong Kong’s special status in June 2020, halting defense exports and restricting the territory’s access to high-technology products as China prepared to enact the security legislation.
The Hong Kong government, which is selected by a pro-Beijing committee, also welcomed the move to restore it.
(Reporting by Beijing newsroom; Additional reporting Trevor Hunnicutt in Washington; Editing by William Maclean and Philippa Fletcher)
Copyright 2026 Thomson Reuters.
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