The US Treasury allowed a national emergency declaration tied to Hong Kong to expire on July 17, quietly removing sanctions on nine officials linked to Beijing’s crackdown on the city’s autonomy. The move came roughly two months after President Trump met with Chinese President Xi Jinping in May, and it has critics asking a pointed question: why would an administration that loudly accuses China of election meddling go soft on the people who dismantled Hong Kong’s democratic institutions?
What actually happened
Executive Order 13936, signed by Trump himself during his first term on July 14, 2020, established a national emergency in response to Beijing imposing its national security law on Hong Kong. That emergency declaration served as the legal backbone for sanctioning officials who participated in the erosion of Hong Kong’s autonomy.
Between 2020 and 2025, the US imposed six rounds of sanctions targeting a total of 48 officials. The expiration of the emergency declaration on July 17, 2026, specifically removed nine of those individuals from the Treasury’s OFAC sanctions lists.
To be clear about what this isn’t: Hong Kong’s special economic and trade privileges, which were revoked separately, have not been restored. Restrictions under the Hong Kong Autonomy Act of 2020 also remain active for other sanctioned individuals.
But critics see even the scalpel as too generous. The timing, just weeks after the Trump-Xi summit, suggests this was a diplomatic concession. The New York Post’s framing captures the tension neatly: an administration that rails against Chinese interference in American politics simultaneously eased penalties on officials who suppressed civil liberties in Hong Kong.
Why crypto traders should pay attention
Hong Kong has been on a deliberate mission to become the regulated crypto capital of Asia. The city launched its licensing regime for virtual asset trading platforms in 2023, approved spot Bitcoin and Ether ETFs in 2024, and has been courting institutional capital with a regulatory framework that contrasts sharply with mainland China’s outright crypto ban.
The geopolitical chess game
The decision followed a May 14, 2026 meeting between President Trump and Chinese President Xi Jinping, widely seen as an attempt to stabilize the relationship. If Congress pushes back aggressively against the sanctions expiration, which several lawmakers have already signaled they might, it could result in new legislation that’s even more restrictive than the expired executive order.