China’s Commerce Ministry announced on Friday that the United States confirmed it will allow an executive order revoking Hong Kong’s preferential trading status to expire, potentially opening the door to restoring the city’s special commercial privileges. The ministry stated that the U.S. made commitments on Hong Kong and other issues during bilateral trade talks in Madrid last year and has now followed through on those assurances.
The U.S. Office of Foreign Assets Control confirmed that the national emergency declared under the executive order had lapsed and removed certain individuals from sanctions imposed through that order. However, the office noted that individuals who remain subject to sanctions under a separate Hong Kong-related act have been transferred to a different sanctions list. Hong Kong leader John Lee and his predecessor Carrie Lam were removed from the original list but added to the alternative sanctions designation.
The decision comes approximately two months after President Donald Trump met with Chinese President Xi Jinping in Beijing. The move could signal warming diplomatic relations between the two countries as Xi prepares for an anticipated visit to the United States later in the year. This development follows the recent release of a prominent underground church pastor who had been detained in China, an outcome reportedly influenced by Trump raising the case with Xi.
Trump originally issued the executive order in 2020 during his first term, citing Beijing’s imposition of a national security law in Hong Kong. The order determined that Hong Kong was no longer sufficiently autonomous to warrant differential treatment compared to mainland China under U.S. law. The executive order had been renewed annually, with the most recent renewal occurring last year.
The Hong Kong government responded positively to the U.S. announcement, describing it as a “positive shift” in American policy. Officials stated that maintaining Hong Kong’s prosperity and stability serves the interests of both China and the United States, and called for resumed normal economic and trade relations between the countries.