By Reuters, July 18, 2026
The U.S. Treasury said on Friday it would allow an executive order first issued in July 2020 — which declared a national emergency over Beijing’s security crackdown in Hong Kong and suspended some special economic and trade privileges — to expire, effectively partially restoring Hong Kong’s separate status that had been revoked during the Trump administration. The order had been extended annually for five years and had imposed sanctions on individuals viewed as linked to the crackdown.
Treasury officials emphasized that the decision to let the 2020 order lapse does not change restrictions imposed under the Hong Kong Human Rights and Democracy Act of 2019 or the Hong Kong Autonomy Act of 2020. A Treasury spokesperson said those two laws significantly overlapped with the national emergency authorities in the now-rescinded order and that the non-renewal reflects sanctions modernization efforts intended to streamline measures and avoid duplication. The spokesperson added that sanctions will remain on 38 of the 49 people who had been targeted under the executive order.
Hong Kong historically enjoyed a special economic and trade relationship with the United States separate from its ties to mainland China, based on its customs status and the high degree of autonomy promised after the 1997 handover. Since 2020 the U.S. has largely treated Hong Kong the same as China for tariffs and export controls; it was not immediately clear whether letting the order lapse would affect duties imposed by former President Trump after his return to office in January 2025, since some of those measures were based on other U.S. laws.
The decision follows recent Washington-Beijing trade talks that included tariff reductions. China’s commerce ministry welcomed the move, calling it a step in a more positive direction for bilateral relations and urging the U.S. to respect China’s sovereignty and Hong Kong’s rule of law, restore normal trade and economic exchanges with the city, and bolster China-U.S. ties. President Trump met Chinese President Xi Jinping in Beijing in May and has invited Xi to the White House in September.
Supporters of China’s national security law say it restored stability after large anti-government protests in 2019; critics contend the law crushed freedoms Hong Kong had been promised. The Hong Kong government, whose leaders are selected by a pro-Beijing committee, also welcomed the decision to reinstate parts of the city’s special status.