According to Bloomberg – the U.S-China Economic and Security Review Commission recommended Congress to reassess Hong Kong’s special trading status for sensitive US technology imports. Since 1992, the US-Hong Kong Policy Act of 1992 treats Hong Kong as fully autonomous for trade and economic matters even after Hong Kong was returned to China in 1997. As such, Hong Kong has not been impacted by the current China tariffs and is also supported by the US in the WTO.
The report indicated that Beijing’s actions toward Hong Kong “continue to run counter to China’s promise to uphold Hong Kong’s autonomy”. The report further states that President Trump could issue an executive order suspending these privileges to Hong Kong if he believes Hong Kong is not autonomous from Beijing.
If President Trump were to revoke the special trade status with Hong Kong regarding exports of dual-use technology (technology that can be used by consumers and the military) to Hong Kong.
The Bloomberg article quoted Hong Kong legislature member, Felix Chung: “The Western community would look at Hong Kong with different eyes and may not even trust Hong Kong. The business sector cannot take this kind of risk.”
Will follow up with more updates if and when available.