Correct, the US (and by extension its allies) considered Hong Kong separately from the rest of China in areas like export controls and trade tariffs.[1]
China took full advantage of this, and the US is probably betting that revoking this special status hurts China more than it hurts the US.
China took full advantage of this, and the US is probably betting that revoking this special status hurts China more than it hurts the US.
[1]: https://en.wikipedia.org/wiki/United_States%E2%80%93Hong_Kon...