China Signals Possible Return of U.S. Trade Privileges for Hong Kong
China signals possible return of U S – HONG KONG — China signaled on Friday that the United States could restore Hong Kong’s preferential trading privileges, confirming that Washington will not renew an executive order that revoked the city’s special commercial status. This development marks a potential shift in bilateral relations as both nations navigate post-pandemic economic ties.
The Commerce Ministry stated that the U.S. made commitments regarding Hong Kong issues and other matters during the U.S.-China trade talks held in Madrid last year. According to the ministry’s statement responding to media inquiries, Washington recently confirmed that the President’s Executive Order on Hong Kong Normalization would come to an end.
“The U.S. side’s actions represent an important step in fulfilling the consensus reached during the bilateral economic and trade talks. China appreciates it,” the ministry declared in its official response.
Implications for Hong Kong’s Economic Future
It is not immediately clear what all the implications of this decision are for the financial hub. The White House referred questions about the executive order lapsing to the Treasury Department for further clarification. Meanwhile, the U.S. Office of Foreign Assets Control issued a statement Friday confirming that the national emergency declared in the executive order had expired and that it delisted individuals who were sanctioned under the order.
However, the agency noted that people who remain sanctioned under another act related to Hong Kong have been added to a different sanction list. The statement showed Hong Kong leader John Lee and his predecessor, Carrie Lam, were removed from the first list but added to the second one.
This U.S. decision came two months after President Donald Trump met with his counterpart Xi Jinping in Beijing. The timing could warm ties between them ahead of Xi’s expected visit to the U.S. later this year. Earlier this month, a pastor of a prominent underground church who was detained in China in October was released after Trump brought up his case with Xi.
Trump signed the now-expired executive order in July 2020, during his first term in response to Beijing imposing a national security law that year. Trump’s order was last renewed for a year in July 2025, extending the restrictions on Hong Kong’s autonomous status.
Under the order, Trump stated that Hong Kong was no longer sufficiently autonomous to justify differential treatment in relation to mainland China under certain laws. It eliminated the preferential treatment for Hong Kong to the extent permitted by law and in the national security, foreign policy, and economic interest of the United States.
China considers the national security law for Hong Kong necessary to restore stability in the city after massive anti-government protests in 2019. The pro-democracy movement back then posed one of the biggest challenges to the Communist Party in Beijing and the Hong Kong government since the former British colony returned to Chinese rule in 1997.
“Safeguarding Hong Kong’s prosperity and stability serves the common interests of China and the US, and also aligns with the general expectation of the international community,” the Hong Kong government stated in its official response.
Six years after the law’s introduction, many leading activists, including pro-democracy former media tycoon Jimmy Lai, were imprisoned under it. Critics argue that the Western-style civil liberties that Beijing promised to maintain for 50 years after the handover have declined significantly.
The Hong Kong government said in a statement that it noted the “positive shift in the U.S. policy” toward the city. It expressed hope that the U.S. will respect China’s sovereignty and the rule of law in Hong Kong and resume normal economic and trade exchanges with the city.
