The US Treasury let the national emergency behind its Hong Kong sanctions expire on July 17, removing nine officials from the OFAC lists. The lapse came roughly two months after President Trump met Chinese President Xi Jinping in May, and critics read the timing as a diplomatic concession. Hong Kong's separately revoked trade privileges stay revoked.
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 Chinese President Xi Jinping in May, and it has critics asking why an administration that accuses China of election meddling eased penalties on the people who dismantled Hong Kong's democratic institutions.
Nine names come off a list of 48
Executive Order 13936, which Trump signed on July 14, 2020, established the national emergency in response to Beijing imposing its national security law on Hong Kong. That declaration served as the legal backbone for sanctioning officials who participated in eroding the city's autonomy.
Between 2020 and 2025, the US imposed six rounds of sanctions targeting a total of 48 officials. The expiration removed nine of those individuals from the Treasury's OFAC sanctions lists.
But the cut is narrow. Hong Kong's special economic and trade privileges, which were revoked separately, have not been restored, and restrictions under the Hong Kong Autonomy Act of 2020 remain active for other sanctioned individuals. Critics nevertheless see even the scalpel as too generous, and the timing just weeks after the Trump-Xi summit suggests a diplomatic concession.
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. Spot Bitcoin and Ether ETFs won approval in 2024.
That framework has been courting institutional capital, and it contrasts sharply with mainland China's outright crypto ban.
Congress could tighten what the order loosened
The decision followed a May 14, 2026 meeting between Trump and Xi, widely seen as an attempt to stabilize the relationship. Several lawmakers have already signaled they might push back against the sanctions expiration, which could result in new legislation that is even more restrictive than the expired executive order.
Source: Crypto Briefing
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