I think 1040NR has that line for Tax treaty.

Looking for U.S.-China Tax treaty on www.irs.gov. It will tell you how to fill in this on 1040NR.

For 1040, I think in the line "other income", fill in
"Exempt income, U.S.-China tax treaty, article 20" and Fill in the number (5000), the "()" means -5000. Then on the final income line, you can deduct this $5000. This is what I did for my 1040.

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