US Lets Hong Kong Emergency Order Expire, Trade Privileges May Return

The United States has allowed a national emergency declaration concerning Hong Kong to expire, a move that China and Hong Kong have welcomed as a possible restoration of the city's preferential trade privileges. The expiration of the Executive Order on Hong Kong Normalization, which had revoked Hong Kong's special trading status since 2020, marks a significant shift in U.S. policy.

What happened

The executive order, signed by President Donald Trump in July 2020 in response to Beijing's national security law, was last renewed in July 2025 and expired this week. China's Commerce Ministry stated that the U.S. confirmed it would not extend the measure, calling it "an important step in fulfilling the consensus reached during the bilateral economic and trade talks" Source: AP News. The U.S. Office of Foreign Assets Control noted that sanctions listed under the order have expired, but individuals previously sanctioned, including Hong Kong leader John Lee and his predecessor Carrie Lam, were removed from one list and added to another under a separate act Source: NPR.

Reactions

The Hong Kong government welcomed the "positive shift in U.S. policy," saying it serves the common interests of both countries Source: SCMP. China expressed appreciation for the move, which follows U.S.-China trade talks in Madrid and a meeting between Trump and Xi Jinping in Beijing Source: AP News. However, the full implications remain unclear, with the White House referring questions to the Treasury Department.

Key points

• The executive order had declared Hong Kong no longer sufficiently autonomous to justify differential treatment, eliminating preferential trade and export control benefits.
• The decision could warm ties ahead of Xi Jinping's expected visit to the U.S. later this year.