A bill to terminate the United States-People's Republic of China Income Tax Convention if the People's Liberation Army initiates an armed attack against Taiwan.

Bill 118 s 3861, also known as the "United States-People's Republic of China Income Tax Convention Termination Act," is a proposed piece of legislation in the US Congress. The bill aims to terminate the income tax convention between the United States and the People's Republic of China if the People's Liberation Army (PLA) initiates an armed attack against Taiwan.

The bill is specifically targeting the economic relationship between the US and China, as the income tax convention governs the taxation of income earned by residents of one country in the other country. By terminating this convention in the event of a PLA attack on Taiwan, the bill seeks to send a strong message of condemnation and consequences for such aggressive actions.

The rationale behind the bill is to deter China from taking military action against Taiwan, a democratic island nation that China claims as its own territory. The US has long supported Taiwan's independence and sovereignty, and any attack on Taiwan would be seen as a direct threat to regional stability and US interests in the Asia-Pacific region. If passed, the bill would require the US government to formally terminate the income tax convention with China in response to a PLA attack on Taiwan. This would have significant implications for the economic relationship between the two countries and could potentially escalate tensions between them. Overall, Bill 118 s 3861 is a clear and direct response to the growing tensions between the US and China over Taiwan. It reflects the US government's commitment to defending Taiwan's sovereignty and sends a strong message that any military aggression by China will not be tolerated.