China says US will restore Hong Kong’s special trade status

(Reuters)

BEIJING, July 17 – The United States is set to restore Hong Kong’s special trading status, revoked in ‌a 2020 order by U.S. President Donald Trump in response to Beijing’s imposition of a national security law in the financial hub, China said on Friday.

The year-long executive order, implemented on July 14, 2020 during Trump’s first term, has been extended ​each year. China’s commerce ministry said Washington had confirmed it would not extend it after the ​renewal date passed this week. The White House did not immediately respond to ⁠a request for comment.

Hong Kong had benefited from a special economic and trade status with the United ​States that was separate from U.S. dealings with China. This status was based on the principle that Hong ​Kong remained a separate customs territory and maintained a high degree of autonomy after its 1997 handover from Britain to China.

The reported decision to let the order lapse would mark a significant reversal and comes after recent trade talks between Washington ​and Beijing that also produced tariff reductions. It could restore Hong Kong’s preferential treatment on export controls ​and other trade measures that have been aligned with those applied to mainland China since 2020.