China indicated on Friday that the United States might restore preferential trade privileges for Hong Kong. According to the Chinese Commerce Ministry, Washington has confirmed it will not renew the executive order that previously revoked the city’s special trading status. This development follows commitments reportedly made by the U.S. regarding Hong Kong and other matters during bilateral economic and trade discussions held in Madrid last year.
Responding to media inquiries, the Commerce Ministry stated that the U.S. decision represents a significant step in fulfilling the consensus reached during those talks, adding that China appreciates the move. While the full implications of this decision remain unclear, the White House has directed questions regarding the lapsing executive order to the Treasury Department.
The shift follows a meeting between President Donald Trump and Chinese President Xi Jinping in Beijing two months ago. The move is viewed as a potential effort to warm ties between the two nations ahead of an anticipated visit by President Xi to the United States later this year. Earlier in July, a pastor of a prominent underground church who had been detained in China since October was released after President Trump raised the case with President Xi.
President Trump originally signed the executive order in July 2020 during his first term in response to Beijing’s implementation of a national security law. The order, which was last renewed in July 2025, declared that Hong Kong was no longer sufficiently autonomous to justify the differential treatment it previously received. This resulted in the elimination of preferential treatment for the city in the interest of U.S. foreign policy and national security. Beijing has consistently maintained that the national security law was necessary to restore stability following the widespread anti-government protests of 2019, which represented a major challenge to the Communist Party and the Hong Kong government since the 1997 handover.
Six years after the law’s introduction, many prominent activists, including former media tycoon Jimmy Lai, remain imprisoned. Critics argue that the civil liberties promised to Hong Kong for 50 years after the British handover have significantly eroded. Despite this, the Hong Kong government acknowledged what it described as a positive shift in U.S. policy. In a statement, the city government noted that safeguarding Hong Kong’s prosperity and stability serves the common interests of both China and the U.S. It further expressed hope that the U.S. will respect China’s sovereignty and the rule of law while resuming normal economic and trade exchanges. Notably, the statement indicated that both Hong Kong leader John Lee and his predecessor, Carrie Lam, have been removed from the initial list associated with the order but added to a second one.
FILE – The U.S. and Chinese flag at the Great Hall of the People prior to the state dinner of President Donald Trump and Chinese President Xi Jinping on May 14, 2026, in Beijing. Mark Schiefelbein/AP hide caption
