U.S. senators from both parties propose a proposal to cancel the U.S.-China tax treaty if China uses force against Taiwan

As China continues to increase its military, economic and diplomatic pressure on Taiwan, U.S. lawmakers are also increasingly worried about China's invasion of Taiwan. Several U.S. senators from both parties jointly introduced a bill this week to require the U.S. government to The US-China tax treaty will be canceled within 30 days after the President determines that China has launched an armed attack on Taiwan .

Comprehensive international media reported on the 9th that Texas Republican U.S. Senator John Cornyn , Delaware Democratic U.S. Senator Chris Coons , Louisiana Republican On March 5, US Senator Bill Cassidy and Nevada Democratic Senator Catherine Cortez-Masto jointly introduced new legislation requiring the United States to The Treasury Department terminated the U.S.-China tax treaty within 30 days after the president determined that China "has initiated armed conflict against Taiwan."

"The United States must make it clear that the Chinese Communist Party will face extremely serious consequences if it invades Taiwan," Senator Cornyn said. "This legislation would require the Treasury Department to terminate the U.S.-China tax treaty if the Chinese Communist Party launches an armed attack on Taiwan." I urge my colleagues to support this legislation.”

“The security of our partners in the Indo-Pacific is critical to U.S. trade goals, regional stability, and promoting democracy around the world,” said Senator Coons. “That’s why I’m proud to co-sign this bipartisan legislation , to send a signal about the potential for Chinese aggression against Taiwan, which would have a very negative impact on our economic relations and trigger immediate and serious consequences."

"It's common sense that China should be punished if it attacks our allies," Senator Cassidy said. "That's the punishment part."

“Taiwan is our most important partner in the Indo-Pacific region, and the United States will continue to support Taiwan’s democratic values ​​and hold the Chinese Communist Party accountable,” said Senator Cortez Masto. “This legislation will help Deter aggression in the region by making it clear that the United States will not grant preferential tax treatment to countries waging war against their immediate neighbors.”

The United States and China signed an agreement in Beijing on April 30, 1984 to avoid double taxation of citizens of the two countries. The agreement was approved by the U.S. Senate on July 24 , 1986 , and came into effect on January 1 , 1987 . The provisions of the agreement include that Chinese students and interns in the United States can enjoy tax exemption of US$ 5,000 for their labor or bonus income in the United States .

The U.S.-China tax treaty includes a provision that allows either party to terminate the treaty with six months' notice ( Article 28 ) .

Last October , as Russian President Vladimir Putin launched an all-out war of aggression against Ukraine, Senators Cornyn and Masto wrote to Treasury Secretary Yellen and Secretary of State Blinken, urging the Biden administration to terminate the tax agreement between the United States and Russia.