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Hong Kong's embattled leader Carrie Lam has finally fully withdrawn a controversial bill that allowed extradition to mainland China and sparked three months of dramatic protests in the financial hub.

The decision to cave in to one of protesters' five core demands marked a dramatic U-turn for Lam, who for months has refused to withdraw the bill.

"We must find ways to address the discontent in society and look for solutions," Lam said in a a video statement Wednesday evening. "After more than two months of social unrest, it is obvious to many that this discontentment extends far beyond the bill."

But Lam refused to give ground on protesters' four other demands, including greater democracy for the city and an independent commission into police conduct, saying all investigations would be carried out by the existing Independent Police Complaints Council (IPCC).

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Lam suspended the extradition bill in June after more than 1 million people marched against it, with protesters surrounding the city's legislature on the day of its planned second reading.

That suspension did not satisfy protesters, who demanded the bill's complete withdrawal -- making it harder for the government to rush the law through at a later date. A withdrawn bill would need to go back to the beginning of the legislative process, whereas a suspended one could resume where it left off.

In recent weeks, protesters' tactics have become increasingly violent as young people felt the government was refusing to consider their demands.

Pro-Beijing lawmaker Michael Tien said that Lam's withdrawal may not stem their anger. "I believe the withdrawal of the bill ... may be too late because this movement has become more than the bill," he said.

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President Trump suggested Friday that he might veto legislation designed to support pro-democracy protesters in Hong Kong — despite its near-unanimous support in the House and Senate — to pave the way for a trade deal with China.

Speaking on the “Fox & Friends” morning program, the president said that he was balancing competing priorities in the U.S.-China relationship.

“We have to stand with Hong Kong, but I’m also standing with President Xi [Jinping],” Trump said. “He’s a friend of mine. He’s an incredible guy...But I’d like to see them work it out. Okay. We have to see and work it out. But I stand with Hong Kong. I stand with freedom. I stand with all of the things that we want to do, but we also are in the process of making the largest trade deal in history. And if we could do that, that would be great."

The House on Wednesday passed the Hong Kong Human Rights and Democracy Act by a vote of 417 to 1. The lone holdout was Rep. Thomas Massie (R-Ky.). That came one day after the Senate had approved the measure on a unanimous vote.

The veto-proof majorities indicate that Congress could overrule the president if he tries to block the bill from becoming law. Trump has only vetoed five measures since becoming president, and Congress has not overridden any of his vetoes so far. Overriding a presidential veto requires a two-thirds vote in both the House and Senate.

As the U.S.-China trade talks approach the one-year mark, the episode shows how other elements of the relationship between the world’s two largest economies are influencing prospects for a deal.

The president’s uncertain remarks drew swift opposition from members of both parties. Sen. Ted Cruz (R-Tex.) said the Hong Kong bill "will become law. This was a true bipartisan moment and a clear signal to the rest of the world that political threats from corrupt regimes will not stand in the way of America supporting the millions of freedom fighters in Hong Kong.”

Senate Minority Leader Charles E. Schumer (D-N.Y.) accused the president of going soft on the Chinese leader. “For a guy who promised to be tough on China, President Trump’s reliable deference to President Xi is all the more bewildering,” Schumer said in a statement. "Being tough on China when it comes to human rights will also help us win the battle on trade.”