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This bill would automatically terminate the 1984 United States-China income tax treaty if China's military launches an armed attack on Taiwan. Under the bill, the Treasury Secretary would have 30 days to notify China through diplomatic channels of the termination after the President confirms that the People's Liberation Army has initiated an armed attack against Taiwan. The income tax convention, which has been in force since 1987, sets rules for how the two countries handle taxation of income earned by individuals and businesses in each other's countries. The bill affects major corporations and individuals with business interests in both countries, as losing this treaty would likely increase their tax obligations. Congress would be notified of any termination through its relevant committees dealing with foreign affairs and taxation.

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