The United States has chosen not to extend its state of emergency over what it deemed as threats posed by Beijing's hardline national security law in Hong Kong, indicating Washington could restore preferential trade treatment for the financial hub.
The emergency declared in July 2020 during President Donald Trump's first presidency has expired, the US Treasury Department confirmed Friday.
China's Ministry of Commerce lauded the development, saying in a statement Friday that Washington's move was "an important step in implementing the consensus reached during economic and trade talks between both sides."
The lapse comes after trade talks in the past year between the world's two biggest economies that lowered tariffs imposed in Trump's second White House term.
In 2020, Trump stripped Hong Kong of preferential trade treatment over Beijing's clampdown on the city.
The US leader declared a national emergency at the time, with an order saying that China's actions to undermine Hong Kong's autonomy contributed to an "unusual and extraordinary threat" to US national security.
The order had been extended annually by the White House until now.
Washington recently confirmed to Beijing that the order would terminate this year, the Chinese Commerce Ministry said Friday.
The US Treasury Department did not immediately reply to a request for comment.
Hong Kong had previously enjoyed a special economic status with the United States, receiving preferential treatment on issues like export controls.
It had maintained significant autonomy since Britain handed the territory back to China in 1997.
But Beijing defied international warnings by imposing the security law, which criminalizes subversion and other offences in Hong Kong, sending a chill through the hub.
The clampdown came after the city saw massive and sometimes destructive pro-democracy protests.
A Hong Kong government spokesperson said the city noted the "positive shift" in US policy and looks towards the resumption of "normal economic and trade exchanges" on both sides.
