Trump Moves to Restore Hong Kong’s Special Trade Status After 5-Year Freeze

The United States is preparing to restore Hong Kong’s special trade status after it was revoked in 2020 under an executive order issued by President Donald Trump in response to Beijing’s introduction of a national security law in the financial hub, according to China’s Ministry of Commerce.

The ministry said on Friday that Washington had confirmed it would allow the renewal deadline for the executive order to pass without extending the measure, effectively ending the policy that placed Hong Kong under trade restrictions similar to those applied to mainland China.

The executive order, issued during Trump’s first presidential term, took effect on July 14, 2020 and had been renewed annually for the past several years.

Before the 2020 decision, Hong Kong enjoyed a separate economic and trade relationship with the United States, based on its status as a separate customs territory and its high degree of autonomy following the end of British rule and its return to China in 1997.

Restoring the special status could mark a significant shift in Washington’s approach, potentially allowing Hong Kong to regain preferential treatment in areas such as export controls and other trade-related measures.

Since 2020, the city has faced restrictions similar to those imposed on mainland China, including limits on access to certain high-technology products and defense-related exports.

The decision comes after recent negotiations between Washington and Beijing that resulted in tariff reductions and renewed efforts to stabilize economic ties between the world’s two largest economies.

China welcomed the move, describing it as a positive step toward implementing understandings reached during recent discussions between the two sides.

“The adjustment of U.S. policy toward Hong Kong in a more positive direction also aligns with broad expectations from the international community,” China’s Ministry of Commerce said in a statement.

Beijing urged Washington to respect China’s sovereignty and Hong Kong’s legal framework, while calling for the restoration and strengthening of normal economic and trade relations with the city.

The U.S. decision to withdraw Hong Kong’s special trade treatment in 2020 came as China prepared to introduce its national security law, which was later implemented in response to months of anti-government protests in 2019.

Critics of the law argue that it significantly weakened the political freedoms promised to Hong Kong after the handover, while supporters say it restored stability and security following the unrest.

Hong Kong’s government, which is selected by a committee largely supportive of Beijing, also welcomed the move to restore the city’s special trade status, viewing it as a step toward strengthening its international economic position.