Bill > HR4848

This bill proposes a specific diplomatic and economic response if the People's Liberation Army (PLA) of China initiates an armed attack against Taiwan. Under the bill, the Secretary of the Treasury would be required to provide written notice to China of the United States' intent to terminate the U.S.-China Income Tax Convention, a bilateral agreement that governs taxation matters between the two countries, within 30 days of the President notifying the Treasury about a PLA military attack on Taiwan. The tax treaty, originally signed in Beijing in 1984 and effective since 1987, would be terminated according to its own Article 28 provisions. Additionally, the bill mandates that the President must formally notify four specific congressional committees about this potential treaty termination: the Senate Foreign Relations and Finance Committees, and the House Foreign Affairs and Ways and Means Committees. By linking treaty termination directly to a potential military action against Taiwan, the bill serves as a potential economic deterrent and signaling mechanism regarding U.S. policy toward China and Taiwan.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/4848/all-info