TAIPEI (Taiwan News) — U.S. senators introduced a bill on Tuesday (March 5) requiring the U.S. Department of the Treasury to terminate the United States-People's Republic of China Income Tax Convention if Beijing attacks Taiwan.

Senators John Cornyn, Chris Coons, Bill Cassidy, and Catherine Cortez Masto co-sponsored the bill.

“The United States must make it crystal clear the Chinese Communist Party will face dire consequences if it moves to invade Taiwan,” Cornyn said in a joint press release.

“The security of our partners in the Indo-Pacific is critical to American trade objectives, regional stability, and fostering democracy around the world,” Coons said. A potential Chinese move against Taiwan would be “seriously detrimental” to U.S.-Taiwan economic ties, he added.

Cassidy said, “It is common sense that if China attacks our ally, then China should be penalized.”

Echoing the other senators, Cortez Masto said that Taiwan is one of the U.S.’ major partners in the Indo-Pacific and pledged continued support for the East Asian nation’s democratic values while holding China accountable for any future aggression.

“This legislation will help deter aggression in the region by making it clear that the U.S. will not give favorable tax treatment to countries that make war on their neighbors,” she said.

The U.S.-China double tax avoidance treaty was signed in 1984 and took effect in 1987. Its main purpose is to avoid double taxation between the two countries, reduce certain tax burdens, and facilitate investment and trade.

Also on Tuesday, Senate Republican leader Mitch McConnel called for continued American support for Taiwan. “The U.S.-Taiwan partnership has become an increasingly important indicator of bipartisan American resolve at a time when our allies and adversaries alike doubt the credibility of our commitments,” McConnell said.