The United States has decided not to extend the national emergency declared over Hong Kong’s autonomy under China’s national security law. U.S. officials confirmed the decision on Friday, noting that the emergency order, first imposed in 2020, will expire. However, Washington has not yet decided whether to restore Hong Kong’s previous special trade privileges.

China’s Ministry of Commerce welcomed the move, calling it an important step toward implementing recent economic and trade understandings between the two countries. The emergency was originally declared during Donald Trump’s presidency after Beijing enacted the national security law, which Washington said undermined Hong Kong’s autonomy and posed an extraordinary threat to U.S. national security. The order had been renewed annually until now.

A U.S. State Department spokesperson said that while the emergency order will lapse, other provisions of the 2020 executive order remain in effect. The Treasury Department added that sanctions on 39 of 48 individuals will continue under a separate law to avoid duplication. Hong Kong’s government also welcomed the policy shift, expressing hope for renewed normal trade relations.