On Friday, July 17, 2026, the United States partially lifted sanctions and trade restrictions related to Hong Kong that were imposed in 2020 by then-President Donald Trump in response to China's security crackdown on the territory. However, the US did not restore Hong Kong's autonomous status, according to statements from the US State and Treasury Departments.

The US Treasury Department announced it allowed only the national emergency portions of Trump's July 14, 2020, executive order to expire. This order had been extended annually for five years and had imposed sanctions on individuals linked to Hong Kong's security crackdown while suspending the territory's special economic and trade privileges tied to its prior autonomous status.

A spokesperson for the US State Department clarified that although the national emergency has ended, other parts of the executive order remain in effect. The spokesperson emphasized that "Hong Kong is no longer sufficiently autonomous to justify differential treatment in relation to the People's Republic of China under the particular US laws and provisions listed in the executive order."

The Treasury Department also noted that the expiration does not affect restrictions imposed under the Hong Kong Human Rights and Democracy Act of 2019 or the Hong Kong Autonomy Act of 2020.

China had earlier claimed that the US decision to let the national emergency declaration expire would restore Hong Kong's special trade and economic status, but US officials disputed this assessment.

Critics argue that the national security law imposed by Beijing has severely curtailed the freedoms promised to Hong Kong upon its return to Chinese rule, while supporters contend it has brought stability following the 2019 anti-government protests.

The US move aligns with broader sanctions modernization efforts aimed at streamlining measures for greater efficiency and avoiding duplication. It also reflects a shift in US policy toward Hong Kong that some say meets international expectations for a more positive approach.

Sources