The US Treasury Department revealed that it has permitted the expiration of an executive order issued during Trump’s administration, which was a response to Beijing’s national security law implementation in Hong Kong.
The executive order from July 14, 2020, extended annually for the past five years, declared a national emergency due to China’s security measures in Hong Kong, resulting in sanctions against individuals involved and the suspension of specific economic and trade privileges.
According to the Treasury, this decision does not alter the restrictions imposed under the Hong Kong Human Rights and Democracy Act of 2019 or the Hong Kong Autonomy Act of 2020.
A Treasury representative mentioned that these two laws significantly overlap with the national emergency that has now been revoked, stating that sanctions will continue for 38 out of the 49 individuals impacted by the executive order.
“The decision not to renew is in line with efforts to modernize sanctions, streamlining them for improved efficiency and effectiveness, and preventing duplications,” the spokesperson added.
Hong Kong previously enjoyed a special economic and trade status with the United States, distinct from US interactions with China. This status was based on the principle that Hong Kong remained a separate customs territory and upheld a high degree of autonomy following its 1997 handover from Britain to China.
The decision to allow the order to lapse signifies a notable change and follows recent trade discussions between Washington and Beijing that also led to tariff reductions.
Since 2020, the U.S. has treated Hong Kong the same as China concerning tariffs and export controls, but it remains unclear whether the expiration of the order will impact duties imposed by Trump after he returned to office in January 2025. Those duties were enacted under different US laws.
China’s commerce ministry welcomed this restoration of status as a step toward fulfilling agreements made during recent talks between Beijing and Washington.
Trump met with Chinese President Xi Jinping in Beijing in May and has extended an invitation for Xi to visit the White House in September.
“The US’s adjustment of its Hong Kong policy in a more favorable direction aligns with the broader expectations of the international community,” the statement released on its website indicated.
It called upon the US to respect China’s sovereignty and the rule of law in Hong Kong, to restore and boost normal trade and economic exchanges with the region, and to aid in improving China-U.S. relations.
Critics of the security law argue that it has stifled the extensive freedoms promised to Hong Kong upon its return to Chinese governance; supporters contend that it has provided stability after a year of anti-government protests in 2019.
The United States began revoking Hong Kong’s special status in June 2020, ceasing defense exports and limiting the territory’s access to high-tech products as China prepared to enact the security legislation.
The Hong Kong government, selected by a pro-Beijing committee, also expressed approval of the restoration.
