. 202. Repeal of reduced withholding rates for residents of China (a) In general Section 894 of the Internal Revenue Code of 1986 is amended— (1) by striking The provisions of in subsection (a) and inserting Except as otherwise provided in this section, the provisions of , and (2) by adding at the end the following new subsection: (d) Exception for People’s Republic of China (1) In general The rates of tax imposed under sections 871 and 881, and the rates of withholding tax imposed under chapter 3, with respect to any resident of the People’s Republic of China shall be determined without regard to any provision of the Agreement between the Government of the United States of America and the Government of the People’s Republic of China for the Avoidance of Double Taxation and the Prevention of Tax Evasion with Respect to Taxes on Income, signed at Beijing on April 30, 1984. (2) Regulations The Secretary shall promulgate regulations to prevent the avoidance of the purposes of this subsection through the use of foreign entities. . (b) Effective date The amendments made by this section shall apply to income received after the date of the enactment of this Act. 203. Taxation of obligations of the United States held by the Government of the People’s Republic of China (a) In general Section 892 of the Internal Revenue Code of 1986 is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: (c) Exception This section shall not apply to the Government of the People’s Republic of China. . (b) Central bank Section 895 of the Internal Revenue Code of 1986 is amended— (1) by striking Income and inserting the following: (a) In general Income , and (2) by adding at the end the following new subsection: (b) Exception This section shall not apply to the any central bank of the People's Republic of China. . (c) Effective date The amendments made by this section shall apply to income received or derived after the date of the enactment of this Act. 204. Surtax on