Will a foreign investor who transfers its equity in a joint venture to another investor subject to any tax?

Will a foreign investor who transfers its equity in a joint venture to another investor subject to any tax?

If A company is accompany based in USA, A company has set up a joint venture in China and contributed USD 1 million to the registered capital of the joint venture, and then assigns its interest in the joint venture to another foreign investor at USD 2 million, then A company should be liable for withholding tax on the USD I million capital gain.

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