The main purpose of this legislation is to establish a response mechanism to potential military aggression by China against Taiwan. Specifically, it aims to terminate the income tax agreement between the United States and China if the Chinese military, known as the People's Liberation Army, launches an armed attack against Taiwan. Key provisions of the legislation include a requirement for the U.S. Secretary of the Treasury to notify China of the termination of the income tax convention within 30 days of the President informing the Secretary that an armed attack has occurred.