US Lets Hong Kong Trade Order Lapse, China Welcomes
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- China's Commerce Ministry welcomed the U.S. decision not to renew the Hong Kong Normalization executive order, saying it represents fulfillment of consensus reached during U.S.-China trade talks in Madrid last year.
- The executive order, signed by Trump in July 2020 in response to Hong Kong's national security law, was last renewed in July 2025 and has now expired.
- The U.S. Office of Foreign Assets Control delisted people sanctioned under the expired order, but Hong Kong leader John Lee and predecessor Carrie Lam were moved to a separate sanctions list — meaning they remain sanctioned under a different act.
- The decision comes two months after Trump met Xi Jinping in Beijing and could warm relations ahead of Xi's expected U.S. visit later this year.
- Earlier this month, a detained pastor of a prominent underground church was released after Trump raised the case with Xi.
- Hong Kong's government called the move a "positive shift" and urged the U.S. to respect China's sovereignty and resume normal economic and trade exchanges.
Why it matters: The executive order's expiration removes one of the most visible U.S. penalties on Hong Kong over the 2020 national security law, though John Lee and Carrie Lam remain sanctioned under a separate authority. The practical trade implications are unclear, but the move signals warming U.S.-China ties ahead of Xi's expected U.S. visit.
