The United States began eliminating Hong Kong's special status under U.S. law on Monday, halting defense exports and restricting the territory's access to high technology products as China prepares new Hong Kong security legislation.

The Commerce Department said it was suspending "preferential treatment to Hong Kong over China, including the availability of export license exceptions," adding that further actions to eliminate Hong Kong's privileged status were being evaluated.

"We urge Beijing to immediately reverse course and fulfill the promises it has made to the people of Hong Kong and the world," it said.