JLS14 9.7.4 gives the following example:

-----
@Target(ElementType.TYPE_USE)
@interface Foo {}

class Test {
  class A {
    static class B {}
  }

  @Foo A.B x; // Illegal
}
-----

However, it is a compile-time error for class B to be declared static in the first place, per 8.5.1: "The static keyword may modify the declaration of a member type C within the body of a non-inner class or interface T." (A is an inner class above.)

The example can easily be fixed by making A into a top level class. Then, it is non-inner, so class B can be declared static.

The final example in 9.7.4, involving classes Test, E, F, and G, is too complicated and should be removed. (It involves a hypothetical whereby an illegal nest of classes is assumed to be legal for the purpose of noting a technicality in the definition of "admissible". This adds confusion faster than it adds clarity.)