Abstract: In recent years, the digital economy with data as the key factor of production has been developing rapidly,which causes significant changes to the business model allover the world. Traditional tax rules can hardly adapt to the challenges that internet companies do business across national boundaries without physical permanent establishment.Therefore, EU introduced the digital tax proposal to protect its own interests. The proposal mainly affects American companies, so the US has taken strong countermeasures against Europe. Still, the digital tax has received positive responses from India, South Korea, Mexico, ASEAN and many others. For China, the potential negative impact of digital tax should not be underestimated. It is necessary to carry out continuous research and take appropriate countermeasures based on the latest international and domestic situation.

Key words: digital tax, tech giants, EU-US trade friction, 301 survey