In response to China's controversial new national security law for Hong Kong, President Trump has ordered his administration to begin the legal process of revoking the territory's special economic status.
Speaking Friday at the White House, Trump also said he will also put sanctions on Chinese and Hong Kong officials responsible for the law.
"China's latest incursion, along with other recent developments that degraded the territory's freedoms, makes clear that Hong Kong is no longer sufficiently autonomous to warrant the special treatment that we have afforded the territory since the handover. China has replaced its promised formula of one country, two systems with one country, one system."
U.S. policy exemptions on Hong Kong, enacted in 1992, give the territory benefits in terms of tariffs, investment, trade and visas, which are some of the factors that have promoted Hong Kong as a financial hub and from which mainland China has also benefitted.