. In simple terms, it allows the U.S. government to impose a tax cap of 20% on foreign individuals and government agencies investing in U.S. stocks.

But the actual tax rate can be combined with the existing tax rate, up to a maximum of 50%.
According to the tariff system between China and the United States, our investment in US stocks will definitely incur a tax rate of 50%...

Specific content:
1. Taxable Object
Covering foreign governments and institutions, foreign-funded enterprises, and overseas individual investors.

2. Scope of Tax Increase
Including passive income from U.S. business profits, securities investment income (dividends, capital gains), bond interest, real estate rent, etc.

3. Tax Rate Design
- Gradual increase: an additional 5% in the first year, followed by an increase of 5 percentage points each subsequent year, capped at a maximum of 20%.
- Actual tax burden: After adding the existing tax rates, the total tax burden on certain earnings may be as high as **50%** (such as interest on U.S. Treasury bonds).

4. Trigger Conditions
Countries designated as "discriminatory foreign" by the U.S. Treasury will have their investors penalized.