world-economy

U.S. Signals Restoration of Hong Kong Trade Privileges

China signaled Friday that the United States will restore Hong Kong's preferential trading status. Washington confirmed it will not renew an executive order that revoked the city's special trading status, according to China's foreign ministry. The Office of Foreign Assets Control said the national emergency declared under the order had expired and delisted sanctioned individuals. However, people remaining under sanctions related to other Hong Kong legislation were transferred to a separate list. Hong Kong leader John Lee and predecessor Carrie Lam were removed from the initial sanctions list but added to the alternative one. The decision follows President Trump's May 14, 2026 meeting with Chinese President Xi Jinping in Beijing. This could warm ties ahead of Xi's anticipated U.S. visit. Trump originally signed the order in July 2020 and last renewed it in July 2025.